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Industries Assistance Commission - Reports - Ginger and ginger products, 15 June 1981


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The Parliament of the Commonwealth of Australia

GINGER AND GINGER PRODUCTS

Industries Assistance Commission Report

15 June 1981

Presented by Command 11 March 1982 Ordered to be printed 25 March 1982

Parliamentary Paper No. 79/1982

INDUSTRIES ASSISTANCE COMMISSION REPORT

G I N G E R A N D GINGER PRO DUCTS

15 JUNE 1981

No. 265

τ

I

INDUSTRIES ASSISTANCE COMMISSION REPORT

GINGER AND GINGER PRODUCTS

15 JUNE 1981

AUSTRALIAN GOVERNMENT PUBLISHING SERVICE

CANBERRA 1981

© Commonwealth o f A u s t r a l i a 1981

Printed by C. J. Thompson, Commonwealth Government Printer, Canberra

INDUSTRIES ASSISTANCE COMMISSION REPORT GINGER AND GINGER PRODUCTS

THE HONOURABLE THE MINISTER FOR BUSINESS AND CONSUMER AFFAIRS

I f o rw a r d t h e C o m m issio n 's r e p o r t on " G in g e r and G in g e r

P r o d u c t s " made i n a c c o r d a n c e w i t h th e r e f e r e n c e o f 8 Ju n e 1979 u n d e r

S e c t i o n 23 of th e I n d u s t r i e s A s s i s t a n c e Commission A ct 1973.

K.B . Mourant S e c r e t a r y

16 J u n e 1981

For t h e p u r p o s e of th e i n q u i r y on t h i s m a t t e r , i n a c c o r d a n c e w i t h S e c t i o n

19 o f t h e I n d u s t r i e s A s s i s t a n c e Commission A c t 1973, th e powers o f th e

Commission have b e e n e x e r c i s e d by:

N.P. HANCKEL ............................................................................................................. Com m issioner

R.G. MAULDON ............................................................................................................. C om m issioner

F.G . ATKINS ..................................................................................... A s s o c i a t e Com m issioner

F or t h e p u r p o s e of th e r e p o r t on t h i s m a t t e r , i n a c c o r d a n c e w i t h S e c t i o n

19 o f t h e I n d u s t r i e s A s s i s t a n c e Commission A ct 1973, th e powers o f th e

Commission have b e e n e x e r c i s e d by:

R.G. MAULDON ............................................................................................................ C om m issioner

F.G. ATKINS ..................................................................................... A s s o c i a t e Com m issioner

GINGER AND GINGER PRODUCTS

CONTENTS

Page

1. SUMMARY 1

2. INTRODUCTION 2

2.1 The P u b l i c I n q u i r y 2

2 . 2 O r i g i n And Scope Of R e f e r e n c e 2

2 . 3 P r e v i o u s R e p o r t s 2

3. THE GINGER INDUSTRY 3

3·1 Farm P r o d u c t i o n 3

3 . 2 P r o c e s s i n g Of Green G in g e r 5

3 -3 P r o d u c t i o n And M a r k e tin g C o n t r o l s 6

3 - 4 The D omestic M arket 7

3-5 E x p o r t s 9

3 . 6 I m p o r t s 9

3 - 7 R e g io n a l C o n s i d e r a t i o n s 10

4 . ASSISTANCE FOR THE PRODUCTION OF GINGER AND GINGER PRODUCTS 11

4.1 I n t r o d u c t i o n 11

4 . 2 T a r i f f A s s i s t a n c e 11

4 - 3 E x p o r t I n c e n t i v e s 14

4 . 4 S ugar M a rk e tin g And P r i c i n g A rran g e m e n ts 15

4. 5 D e c e n t r a l i s a t i o n A s s i s t a n c e 1 6

4 . 6 P r o d u c t i o n And M a r k e tin g C o n t r o l s 1 6

4.7 A s s i s t a n c e F or G in g er Growing 17

4 . 8 E f f e c t i v e A s s i s t a n c e 17

5. CONCLUSIONS 19

5 - 1 I n t r o d u c t i o n 19

5 - 2 T a r i f f A s s i s t a n c e 19

5-3 E f f e c t Of C o m m issio n 's P ro p o se d Recommendations On The G in g er I n d u s t r y 23

5 . 4 O th e r M a t t e r s 24

5 . 5 T a r i f f S i m p l i f i c a t i o n 24

5 . 6 Customs V a l u a t i o n 25

6 . STATUTORY REPORTING REQUIREMENTS 26

7 . RECOMMENDATIONS 28

APPENDICES

1. The R e f e r e n c e 29

2. L i s t o f W i tn e s s e s 30

3. R e q u e s t s And S u g g e s t i o n s

4. T a r i f f P r o v i s i o n s 32

5. S t a t i s t i c s 37

1 . SUMARY

A s s i s t a n c e f o r t h e p r o d u c t i o n o f g i n g e r and g i n g e r p r o d u c t s was l a s t

r e v ie w e d i n t h e mid 1960s. At t h a t tim e i m p o r t s co m p rised t h e b u l k o f

g i n g e r s u p p l i e s a v a i l a b l e on th e d o m e s tic m a r k e t . A complex s t r u c t u r e o f

t a r i f f s was i n t r o d u c e d w hich p r o v id e d h ig h a s s i s t a n c e a t p r i c e l e v e l s o f

t h a t t i m e . The p r o t e c t i o n p r o v id e d by t h a t t a r i f f s t r u c t u r e h a s been

r e d u c e d by i n f l a t i o n and t h e a c r o s s th e b o ard c u t to t a r i f f s made i n 1973-

The T a r i f f now p r o v i d e s r e l a t i v e l y low a s s i s t a n c e to t h e p r o d u c t i o n o f

g i n g e r p r o d u c t s g e n e r a l l y , th o u g h i n some y e a r s i t h a s been h i g h f o r some

p r o d u c t s . S in c e t h e mid 1 9 6 0 s , t h e i n d u s t r y h a s grown s t r o n g l y and now

makes a s i g n i f i c a n t c o n t r i b u t i o n to economic a c t i v i t y and employment i n th e

Near N o rth C oa st r e g i o n o f Q u e e n s la n d .

The Buderim G in g e r G row ers' C o - o p e r a t i v e A s s o c i a t i o n L im ite d s u p p l i e s most

o f th e d o m e s tic r e q u i r e m e n t f o r g i n g e r p r o d u c t s . I n a d d i t i o n to h o l d i n g a

dom inant p o s i t i o n on th e d o m e s tic m a r k e t , t h e A s s o c i a t i o n h a s b u i l t up a

s i g n i f i c a n t e x p o r t t r a d e . I t e x p e c t s th e r e c e n t s t r o n g growth i n th e

i n d u s t r y to c o n t i n u e and i s c u r r e n t l y e x p a n d in g i t s p r o c e s s i n g f a c i l i t i e s .

The A s s o c i a t i o n i n i t i a l l y r e q u e s t e d a c o n t i n u a t i o n o f t h e e x i s t i n g t a r i f f

a s s i s t a n c e on a l l g i n g e r p r o d u c t s , b u t s u b s e q u e n t to t h e d r a f t r e p o r t

h e a r i n g i t amended i t s r e q u e s t to i n c l u d e a 10 p e r c e n t ad v a lo re m t a r i f f

on g i n g e r p r o d u c t s p r e s e r v e d by s u g a r .

I n a d d i t i o n to th e Customs T a r i f f , t h e i n d u s t r y has r e c e i v e d a s s i s t a n c e in

r e c e n t y e a r s from t h e m a r k e t i n g and p r i c i n g a r r a n g e m e n t s f o r s u g a r and

e x p o r t a s s i s t a n c e sc hem e s. However, t h e Commission e s t i m a t e d t h a t ,

o v e r a l l , t h e p r o c e s s i n g o f g i n g e r r e c e i v e d low l e v e l s o f a s s i s t a n c e i n th e

p e r i o d 1976-77 to 1978-79- I n v iew o f t h i s and th e r e c e n t grow th o f g i n g e r

p r o d u c t i o n b a s e d on e x p a n s io n o f e x p o r t s a l e s , th e i n d u s t r y a p p e a r s to be

e f f i c i e n t and w e l l s u i t e d to th e economic e n v iro n m e n t i n A u s t r a l i a .

The C o m m issio n 's re c om m enda tions a r e d e s ig n e d t o m a i n t a i n th e a s s i s t a n c e

th e T a r i f f p r o v i d e s to t h e goods u n d e r r e f e r e n c e and to s i m p l i f y th e

T a r i f f . A f e a t u r e o f t h e e x i s t i n g T a r i f f i s t h a t s l i d i n g s c a l e d u t i e s a r e

s p e c i f i e d f o r most i t e m s . W i tn e s s e s saw th e s l i d i n g s c a l e s as p r o v i d i n g

th e i n d u s t r y w i t h a b u f f e r a g a i n s t a d v e r s e i m p o r t p r i c e f l u c t u a t i o n s .

For d r y g i n g e r ( i t e m s 0 9 . 1 0 . 3 o r 0 9 - 1 0 . 5 ) t h e Commission w i l l recommend

c o n t i n u e d a s s i s t a n c e t h r o u g h a s l i d i n g s c a l e d u ty o f $ 0 .6 0 p e r kg l e s s 50

p e r c e n t o f th e v a l u e o f t h e g o o d s . The d u ty i s n o t d e s ig n e d t o p r o v id e

c o n t i n u a l d i r e c t a s s i s t a n c e to t h e i n d u s t r y , b u t r a t h e r to p r o v i d e a b u f f e r

a g a i n s t a d v e r s e p r i c e f l u c t u a t i o n s . The Commission e n v i s a g e s t h a t , on

a v e r a g e , th e recommended r a t e o f d u ty would n o t p r o v i d e h ig h a s s i s t a n c e to

d r y g i n g e r p r o d u c t s .

Green g i n g e r ( i t e m 0 9 . 1 0 . 1 ) , g i n g e r i n b r i n e ( i t e m 0 9 - 1 0 . 4 ) and g i n g e r

p r o d u c t s p r e s e r v e d by s u g a r ( i t e m s 2 0 . 0 4 .2 o r 2 0 . 0 6 . 1 ) r e c e i v e l i t t l e

a s s i s t a n c e t h r o u g h the T a r i f f u nder th e c u r r e n t w orld m a r k e tin g s t r u c t u r e .

The Commission w i l l recommend t h a t t h e s e ite m s be d u t i a b l e a t minimum

r a t e s .

The Commission w i l l recommend t h a t g i n g e r i n ( i t e m 1 3 ·0 3 -1 ) be d u t i a b l e a t

10 p e r c e n t . T h is i s i n l i n e w ith t h e G o v e rn m e n t's r e c e n t d e c i s i o n to

p r o v i d e o t h e r f r a g r a n c e s and e s s e n c e s w ith t a r i f f a s s i s t a n c e o f 10 p e r

c e n t .

2 . INTRODUCTION 2.1 The P u b l i c I n q u i r y

On 8 June 1979, t h e M i n i s t e r f o r B u s i n e s s and Consumer A f f a i r s asked th e

I n d u s t r i e s A s s i s t a n c e Commission to i n q u i r e and r e p o r t w h e th e r a s s i s t a n c e

s h o u ld be a f f o r d e d to t h e p r o d u c t i o n o f g i n g e r and g i n g e r p r o d u c t s w i t h i n

A u s t r a l i a . The te rm s o f th e M i n i s t e r ' s r e f e r e n c e a r e s e t o u t i n

Appendix 1 .

P u b l i c h e a r i n g s were h e l d i n B r i s b a n e on 7 J u l y 1 980 and i n Melbourne on 9

J u l y 1980. A f u r t h e r p u b l i c h e a r i n g was h e l d i n B r is b a n e on 14 A p r i l 1981

f o r t h e p u r p o s e o f r e c e i v i n g e v i d e n c e on t h e C o m m issio n 's d r a f t r e p o r t

i s s u e d i n J a n u a r y 1981. D uring t h e c o u r s e o f th e i n q u i r y th e Commission

v i s i t e d g i n g e r p r o d u c in g farm s and t h e p r o c e s s i n g p l a n t s a t Buderim and

Y a ndina .

W i tn e s s e s who a p p e a r e d a t t h e h e a r i n g s a r e d e t a i l e d i n Appendix 2 and t h e i r

R e q u e s t s and S u g g e s t i o n s i n A ppendix 3· The m a j o r i t y o f w i t n e s s e s

r e p r e s e n t e d p r o d u c in g i n t e r e s t s . Commonwealth and Q u ee nsla nd Government D e p a rtm e n ts and t h e Government o f F i j i were r e p r e s e n t e d . The Government o f

F i j i was t h e o n ly w i t n e s s to p r e s e n t e v i d e n c e a t t h e d r a f t r e p o r t h e a r i n g .

At t h e d r a f t r e p o r t h e a r i n g no o p p o s i t i o n to t h e p r o p o s e d recom m endations

was e x p r e s s e d . S u b s e q u e n t to t h e D r a f t r e p o r t h e a r i n g and i n r e s p o n s e to

e v i d e n c e s u b m i t t e d by t h e Government o f F i j i , t h e Buderim G in g er Co­

o p e r a t i v e A s s o c i a t i o n L im i te d ( t h e A s s o c i a t i o n ) r e q u e s t e d an ad valo re m

t a r i f f o f 10 p e r c e n t to a p p l y to g i n g e r p r o d u c t s p r e s e r v e d by s u g a r .

A copy o f t h e o f f i c i a l t r a n s c r i p t o f p u b l i c e v i d e n c e has been fo rw ard e d to

t h e M i n i s t e r f o r B u s in e s s and Consumer A f f a i r s .

2 . 2 O r i g i n And Scope Of R e f e r e n c e

The r e f e r e n c e i s o f d e p a r t m e n t a l o r i g i n and i s p a r t o f th e C om m ission's

T a r i f f Review Programme.

T a r i f f p r o v i s i o n s a p p l i c a b l e to th e goods u n d e r r e f e r e n c e form Appendix 4 .

The ite m s f o r which a s s i s t a n c e i s b e i n g examined a r e g r e e n g i n g e r , g i n g e r

i n b r i n e , g i n g e r p r e s e r v e d by s u g a r ( g i n g e r i n s y r u p , c r y s t a l l i s e d g i n g e r ,

g l a c e g i n g e r , e t c . ) , d r i e d g i n g e r ( d r i e d p e e le d whole r o o t and s l i c e d d r i e d

g i n g e r ) and g i n g e r e x t r a c t s ( g i n g e r i n o r o l e o r e s i n o f g i n g e r ) .

2 . 3 P r e v i o u s R e p o r t s

Goods c o v e re d by t h i s

T a r i f f Board R e p o r t s :

r e f e r e n c e have been th e s u b j e c t o f th e f o l l o w i n g

R e p o rt No. Date T i t l e

371 27 J a n u a r y 1931 G in g e r

1211 22 May 1953 G in g er

1263 15 O c to b e r 1 954 G in g e r

1493 16 March 1 961 G in g e r

1721 18 S ep te m b er 1964 G in g e r , O il o f G in g e r ,

O l e o r e s i n o f G i n g e r .

R a te s o f d u t y c u r r e n t l y a p p l i c a b l e to g i n g e r im p o r t s a r e , i n g e n e r a l , based

on t h e r a t e s recommended i n t h e 1964 r e p o r t . The most s i g n i f i c a n t change

s i n c e 1964 was a 25 p e r c e n t r e d u c t i o n i n t a r i f f a s s i s t a n c e as p a r t o f th e

g e n e r a l r e d u c t i o n o f t a r i f f s i n J u l y 1973·

2

3· 3.1

THE GINGER INDUSTRY E a rn P r o d u c t i o n

Commercial g i n g e r growing i n A u s t r a l i a i s c a r r i e d o u t i n th e Nambour r e g i o n

o f Q u ee nsla nd where th e m a jo r r u r a l p r o d u c t s a r e s u g a r cane and

h o r t i c u l t u r a l c r o p s . G in g e r was f i r s t grown i n t h e a r e a a t Buderim ( a b o u t

100 kms n o r t h o f B r is b a n e ) i n th e l a t e 1920s.

A u s t r a l i a n p r o d u c t i o n was n e g l i g i b l e b e f o r e t h e e a r l y 1 9 4 0 s. At t h a t tim e ,

s m a ll q u a n t i t i e s o f g i n g e r were grown c o m m e r c ia lly i n New South Wales as

w e l l a s i n Q u e e n s la n d . I m p etu s was g iv e n to t h e growth o f th e d o m e s tic

i n d u s t r y by t h e war i n t h e P a c i f i c a r e a which b r o u g h t a b o u t a c e s s a t i o n o f

i m p o r t s . Between 1942 and 1946 t h e i n d u s t r y expanded i n Q u ee nsla nd w h ile

p r o d u c t i o n i n New South Wales v i r t u a l l y c e a s e d . I n 1946, t h e r e w ere

754 t o n n e s o f g r e e n g i n g e r p roduce d i n Q u ee nsla nd from 59 h e c t a r e s .

The i n d u s t r y h a s bee n c e n t r e d on t h e p r o c e s s i n g f a c t o r y a t Buderim owned

and o p e r a t e d by t h e A s s o c i a t i o n . I n th e f u t u r e , th e i n d u s t r y w i l l be

c e n t r e d on t h e A s s o c i a t i o n ' s new Y andina p r o c e s s i n g complex which was

o f f i c i a l l y opened i n A p r i l 1980. I t i s e x p e c t e d t h a t i t w i l l t a k e te n

y e a r s t o t r a n s f e r a l l p r o c e s s i n g o p e r a t i o n s from Buderim to Y an d in a .

I n t h e 1980 s e a s o n 51 f a r m in g e n t e r p r i s e s p roduce d g i n g e r u nder c o n t r a c t to

t h e A s s o c i a t i o n . A s m a ll number o f g ro w e rs who a r e n o t members o f t h e

A s s o c i a t i o n a l s o produce g i n g e r . The d i s t r i b u t i o n o f t h e 51 A s s o c i a t i o n

members' f a r m s , by s i z e , i s p r e s e n t e d i n Appendix T a b le 5 ·5 · I n t h e 1980

s e a s o n t h e a v e r a g e a r e a o f g i n g e r p e r grow er was a p p r o x i m a t e l y 4 . 2 h a .

A cc o rd in g to t h e Q ueensland D ep a rtm en t o f P rim a r y I n d u s t r i e s , g ro w e rs w ith

more t h a n 4 . 0 h a o f g i n g e r u s u a l l y d e r i v e a s i g n i f i c a n t p r o p o r t i o n o f t h e i r

income from g i n g e r p r o d u c t i o n . About h a l f t h e g ro w e rs hav e 4 . 0 ha o r more

o f g i n g e r u n d e r c u l t i v a t i o n . Most g ro w e rs a r e in v o lv e d i n th e p r o d u c t i o n

o f o t h e r c o m m o d itie s, i n c l u d i n g s u g a r cane and h o r t i c u l t u r a l c r o p s such a s

p i n e a p p l e s , c i t r u s , c u s t a r d a p p l e s and s t r a w b e r r i e s .

I n T a b l e 3.1 t h e a r e a , q u a n t i t y and v a l u e o f p r o d u c t i o n o f g r e e n g i n g e r a r e

p r e s e n t e d f o r th e y e a r s 1970 t o 1979·

3

TABLE 3 .1 : PRODUCTION OP GREEN GINGER: 1 9 7 0 TO 1979

C a l e n d a r y e a r A reaa P r o d u c t i o n

Value o f

P r o d u c t i o n ' 3

h e c t a r e s t o n n e s $ ' 0 0 0

1970 143 4 424 580

1971 169 5 437 681

1972 180 5 213 662

1973 142 5 863 868

1974 112 4 107 587

1975 130 3 968 682

1976 123 4 542 812

1977 122 4 078 765

1978 126 3 521 905

1979° 155 5 283 1 385

a The a r e a shown f o r any p a r t i c u l a r y e a r was a c t u a l l y p l a n t e d i n t h e

p r e v i o u s y e a r . F o r ex a m p le , i n c a l e n d a r y e a r 1978, 3521 t o n n e s o f

g i n g e r were h a r v e s t e d from 126 h e c t a r e s p l a n t e d i n 1977·

b V alue p l a c e d on r e c o r d e d p r o d u c t i o n a t w h o l e s a l e p r i c e s b e f o r e any

d e d u c t i o n s a r e made,

c P r e l i m i n a r y - s u b j e c t to r e v i s i o n .

SOURCE: A u s t r a l i a n Bureau o f S t a t i s t i c s

I n 1979, p r o d u c t i o n o f g r e e n g i n g e r by A s s o c i a t i o n members amounted to

5205 t o n n e s . The 1980 h a r v e s t t o t a l l e d a r e c o r d o f 6540 t o n n e s . The

i n d u s t r y embarked on a m a jo r e x p a n s i o n programme i n 1979 w hich w i l l d o u b le

i t s p r o d u c t i o n c a p a c i t y by t h e end o f 1981.

G in g e r i s h a r v e s t e d a t t h r e e ti m e s d u r i n g t h e y e a r ; an e a r l y h a r v e s t i n

F e b r u a r y -M a r c h when im m atu re g i n g e r , which i s r e l a t i v e l y f r e e o f f i b r e , i s

h a r v e s t e d ; a f i r s t l a t e h a r v e s t i n M a y -J u n e; and t h e second l a t e h a r v e s t

from J u l y t o O c to b e r when t h e c r o p i s f u l l y m a tu r e and q u i t e f i b r o u s .

H a r v e s t t im e f o r t h e e a r l y c r o p i s c r i t i c a l as f i b r e d ev e lo p m e n t i s v e r y

r a p i d . H a r v e s t i n g b e g i n s when 45 p e r c e n t by w e ig h t o f t h e rhizom e i s f r e e

from a l l v i s i b l e f i b r e and c e a s e s when t h e l e v e l f a l l s below 35 p e r c e n t .

The e a r l y h a r v e s t i s a l a b o u r i n t e n s i v e o p e r a t i o n i n which t h e s t o o l s a r e

u s u a l l y p u l l e d from t h e ground by hand and t h e t o p s snapped o f f . S u r p l u s

s o i l and r o o t s a r e removed b e f o r e t h e r h iz o m e s a r e t r a n s p o r t e d i n b u l k b i n s

t o t h e p r o c e s s i n g f a c t o r y . Methods o f h a r v e s t i n g l a t e g i n g e r v a r y , b u t

most g ro w e rs u s e a d a p t e d p o t a t o d i g g e r s to l i f t t h e r h i z o m e s . A f t e r

s u r p l u s s o i l and r o o t s a r e rem oved, th e rh izo m es a r e b u l k h a n d l e d to th e

f a c t o r y .

F o r 1979, t h e a v e r a g e p r i c e o f e a r l y h a r v e s t g i n g e r was $290 p e r t o n n e ,

f i r s t l a t e h a r v e s t g i n g e r $145 p e r to n n e and second l a t e h a r v e s t $135 p e r

t o n n e . In 1980 t h e p r i c e s were $320, $157 and $147 r e s p e c t i v e l y .

I n t h e p a s t t h e A s s o c i a t i o n and t h e Q u een slan d D ep artm en t o f P rim a ry

I n d u s t r i e s h av e c o n d u c te d r e s e a r c h i n t o th e growing o f g r e e n g i n g e r and i t s

p r o c e s s i n g . Most r e s e a r c h u n d e r t a k e n c u r r e n t l y i s f i n a n c e d by t h e

A s s o c i a t i o n and i n d i v i d u a l g r o w e r s . The Q ueensland D ep artm en t o f P rim a r y

4

I n d u s t r i e s s t a t e d t h a t a l l o c a t i o n o f i t s r e s o u r c e s to g i n g e r r e s e a r c h ov er

th e l a s t few y e a r s had n o t bee n s u b s t a n t i a l . The Newlake G ra z in g Company

r e q u e s t e d t h a t a r e s e a r c h f e l l o w s h i p be s e t up to examine f a c t o r s a f f e c t i n g

th e p r o d u c t i o n o f g i n g e r .

G in g e r g r o w e r s , a l o n g w i t h a l l p r im a r y p r o d u c e r s , may o b t a i n a d v i c e from

o f f i c e r s o f t h e Q u ee n sla n d D ep a rtm en t o f P rim a r y I n d u s t r i e s . The

A s s o c i a t i o n a l s o p r o v i d e s an e x t e n s i o n s e r v i c e f o r i t s members. F or many

y e a r s t h e A s s o c i a t i o n h a s employed an e x p e r i e n c e d grow er as a p a r t tim e

e x t e n s i o n o f f i c e r to h e l p g r o w e rs w ith t h e i r p r o b l e m s . S in c e 1978 t h e

A s s o c i a t i o n h a s added a f u l l tim e e x t e n s i o n o f f i c e r . As w e ll a s p r o v i d i n g

a d v i c e to g r o w e r s , th e e x t e n s i o n o f f i c e r s check th e s u i t a b i l i t y o f new

a r e a s f o r g i n g e r p r o d u c t i o n ; m o n it o r a r e a s p l a n t e d ; e s t i m a t e y i e l d s f o r

f a c t o r y p l a n n i n g p u r p o s e s ; and m a i n t a i n a s u r v e i l l a n c e f o r p e s t and d i s e a s e

p r o b l e m s .

3 ·2 P r o c e s s i n g Of G reen G in g e r

The A s s o c i a t i o n i s t h e o n ly com m ercial p r o c e s s o r of g r e e n g i n g e r i n

A u s t r a l i a . The q u a n t i t i e s o f g r e e n g i n g e r p r o c e s s e d and h a n d le d by th e

A s s o c i a t i o n from 1975 t o 1980 a r e shown i n T a b le 3 . 2 .

TABLE 3 . 2 : GREEN AND PROCESSED GINGER PRODUCTION : 1975 TO 1980 ( to n n e s )

Green G in g e r From P r o c e s s e d G inger From

C a le n d a r Year E a r l y H a r v e s t

F i r s t L a te

H a r v e s t

Second L ate H a r v e s t F i r s t L a te

H a r v e s t

Second L a te H a r v e s t

1975 1 593 303 1 285 34 178

1976 1 578 211 1 952 23 288

1977 1 657 376 1 219 38 163

1978 1 679 320 571 33 79

1979 2 224 602 1 082 68 155

1 980 3 104 316 1 420 34 213

SOURCE: Buderim G in g e r G row ers' C o - o p e r a t i v e A s s o c i a t i o n L i m i t e d .

B ecause o f t h e i r q u a l i t y c h a r a c t e r i s t i c s and s e p a r a t e end u s e s , e a r l y and

l a t e h a r v e s t g i n g e r a r e p r o c e s s e d d i f f e r e n t l y . As i t d e t e r i o r a t e s i f l e f t

to s t a n d , e a r l y h a r v e s t g i n g e r i s p r o v i s i o n a l l y p r e s e r v e d in s u l p h u r

d i o x i d e b r i n e . G in g er i n b r i n e w i l l keep f o r s e v e r a l y e a r s b u t i s n o r m a lly

ta k e n to th e n e x t s t a g e o f p r o c e s s i n g w i t h i n 12 months o f h a r v e s t i n g . In

t h i s s t a g e , t h e b r i n e d g i n g e r i s d r a i n e d , trimmed and graded by h a n d , c u t ,

p e e l e d , b o i l e d and im p re g n a te d i n s u g a r s y r u p s o f p r o g r e s s i v e l y i n c r e a s i n g

s t r e n g t h to p ro d u c e g i n g e r i n s y r u p . C r y s t a l l i s e d g i n g e r i s o b t a i n e d by

d r a i n i n g th e s y r u p and c o a t i n g th e g i n g e r w ith s u g a r c r y s t a l s . D ra in e d and

g l a c e g i n g e r a l s o a r e p ro d u ce d from g i n g e r i n s y r u p . The A s s o c i a t i o n has

d e v e lo p e d i t s c h a r a c t e r i s t i c a l l y g o ld e n c o l o u r e d and mild f l a v o u r e d g i n g e r

p r o d u c t s by s e l e c t i o n and s t r i c t m o n i t o r i n g o f f i b r e developm ent d u r i n g th e

c r i t i c a l e a r l y h a r v e s t p e r i o d .

The l a t e h a r v e s t c r o p i s used in th e p r o d u c t i o n o f d r i e d g i n g e r . There a r e

two l a t e h a r v e s t s . G in g e r from th e f i r s t l a t e h a r v e s t i s s u i t a b l e f o r th e

p r o d u c t i o n o f d r i e d p e e le d whole r o o t g i n g e r , used p r i n c i p a l l y f o r

5

p r o d u c t i o n o f g i n g e r i n . The A s s o c i a t i o n does n o t p r o d u c e g i n g e r i n , b u t

s e l l s d r y g i n g e r f o r i t s e x t r a c t i o n . Second l a t e h a r v e s t g i n g e r i s u s u a l l y

s l i c e d p r i o r to d e h y d r a t i o n to o b t a i n s l i c e d d r i e d g i n g e r , which i s

s u b s e q u e n t l y ground o r used i n t h e p r o d u c t i o n o f o i l o f g i n g e r . The

A s s o c i a t i o n p r o d u c e s ground g i n g e r and s e l l s s l i c e d d r i e d g i n g e r to o t h e r

p r o c e s s o r s . I t a p p e a r s t h a t o i l o f g i n g e r i s n o t p ro d u ce d i n A u s t r a l i a .

The A s s o c i a t i o n ' s p r o c e s s i n g a c t i v i t y has been d e v o te d m a in ly to th e

p r o d u c t i o n o f g i n g e r p r o d u c t s p r e s e r v e d by s u g a r ( m a i n ly g i n g e r i n s y r u p

and c r y s t a l l i s e d g i n g e r ) . D r i e d g i n g e r , i n r e c e n t y e a r s , h a s a c c o u n t e d f o r

15 p e r c e n t o r l e s s o f th e a n n u a l v a l u e o f p r o d u c t i o n .

5 . 3 P r o d u c t i o n And M a rk e tin g C o n t r o l s

The p r o d u c t i o n and m a r k e t i n g o f g i n g e r i s i n f l u e n c e d by th e Q ueensland

P rim a r y P r o d u c e r s ' O r g a n i s a t i o n and M a rk e tin g A c t. T h is l e g i s l a t i o n

p r o v i d e s (among o t h e r t h i n g s ) f o r t h e e s t a b l i s h m e n t o f m a r k e t i n g b o a r d s to

c o n t r o l t h e m a r k e t i n g , i n Q u e e n s la n d , o f p r im a ry p r o d u c t s produced i n

t h a t S t a t e . Under t h i s l e g i s l a t i o n p r o d u c t i o n and m a r k e t i n g o f g i n g e r i n

Q ueensland i s c o n t r o l l e d and a d m i n i s t e r e d by th e G in g e r M a rk e tin g Board

( t h e Board) and t h e A s s o c i a t i o n . The A s s o c i a t i o n was formed i n 1941 and

t h e Board i n 1942. U n t i l 1943, th e A s s o c i a t i o n a c t e d as th e a g e n t o f th e

Board f o r r e c e i v i n g , t r e a t i n g and m a r k e t i n g g i n g e r and d i s t r i b u t i n g th e n e t

p r o c e e d s o f s a l e s d i r e c t to g r o w e r s . The Board i s co m prised o f th e

D i r e c t o r ( o r h i s d e p u ty ) o f t h e M a rk e tin g D i v i s i o n o f t h e Q ueensland

D ep a rtm en t o f P r im a r y I n d u s t r i e s and t h r e e grow er e l e c t e d members.

I n 1943, o w n e r s h ip o f h a r v e s t e d and d e l i v e r e d g i n g e r was v e s t e d i n th e

Board which th e n h a n d le d a l l f i n a n c i a l t r a n s a c t i o n s in r e s p e c t to t h e s a l e

o f t h e c r o p and paym ents to g r o w e r s . The A s s o c i a t i o n a d m i n i s t e r e d t h e

p r o c e s s i n g o p e r a t i o n s f o r th e B o a rd . I n 1955, g ro w e rs were exempted from

d e l i v e r y t o t h e Board i f th e y d e l i v e r e d th e cro p u n d e r c o n t r a c t to t h e

A s s o c i a t i o n . These a r r a n g e m e n t s have c o n t in u e d s i n c e th e n w ith th e Board

o p e r a t i n g i n an a d m i n i s t r a t i v e c a p a c i t y o n ly .

C o n t r o l o v e r th e p r o d u c t i o n o f g i n g e r i s a c h ie v e d by th e A s s o c i a t i o n

th r o u g h a sy ste m o f c o n t r a c t s which i n c l u d e p r o d u c t i o n q u o t a s . The

c o n t r o l s e n s u r e t h a t s a l e s w i t h i n Q ueensland o f g i n g e r grown w i t h i n

Q ueensland a r e made e i t h e r to t h e A s s o c i a t i o n f o r p r o c e s s i n g , o r on t h e

f r e s h f r u i t m a rk e t w ith th e a p p r o v a l o f th e A s s o c i a t i o n . R e t e n t i o n o f and

s a l e s o f g i n g e r f o r seed a l s o a r e c o n t r o l l e d by th e A s s o c i a t i o n . However,

g i n g e r may be produced i n Q ueensland w i t h o u t h o l d i n g a q u o ta i f i t i s s o ld

on i n t e r s t a t e m a rk e ts o r e x p o r t e d . A s m a ll number o f n o n - A s s o c i a t i o n

g ro w e rs pro d u ce f o r such m a r k e t s .

To grow g i n g e r u nder c o n t r a c t to th e A s s o c i a t i o n , grow ers must be members

and buy 88 s h a r e s i n th e A s s o c i a t i o n a t $2 a s h a r e f o r e v e r y a c r e o f g i n g e r

q u o t a . Growers must have s u f f i c i e n t i r r i g a t i o n c a p a c i t y to w a te r th e t o t a l

a r e a c o n t r a c t e d .

T here a r e c u r r e n t l y two ty p e s o f q u o t a s ; to n n a g e and a r e a q u o t a s . The

A s s o c i a t i o n e x p l a i n e d t h a t to n n a g e q u o ta s were a l l o c a t e d in e a r l i e r y e a r s

f o r th e e a r l y and f i r s t l a t e h a r v e s t s ( b u t not f o r second l a t e h a r v e s t ) and

a r e h e l d by some members who have c o n t in u e d to p ro d u c e g i n g e r . Area q u o t a s

a r e now used and a r e i s s u e d f o r th e a r e a to be p l a n t e d . The A s s o c i a t i o n ' s

p o l i c y i s to phase o u t th e use o f to n n a g e q u o t a s . For p l a n n i n g p u r p o s e s

to n n a g e q u o ta s a r e c o n v e r te d to an a r e a e q u i v a l e n t u s i n g h i s t o r i c y i e l d

d a t a .

6

In A u g u s t- S e p te m b e r , th e A s s o c i a t i o n e s t i m a t e s th e g i n g e r needed to s a t i s f y

i t s e x p e c t e d s a l e s f o r t h e f o r th c o m in g s e a s o n . Growers a r e a l l o c a t e d t h e i r

p l a n t i n g a r e a w i t h i n q u o ta ( a r e a q u o ta p lu s an a r e a e q u i v a l e n t f o r tonnage

q u o t a s ) f o r th e f o r th c o m in g s e a s o n b a s e d on e s t i m a t e s o f m a rk e t

r e q u i r e m e n t s and e x p e c te d y i e l d s . I n i t i a l l y t h e A s s o c i a t i o n a l l o c a t e s

a r e a s to i t s members b a s e d on t h e i r r e s p e c t i v e p l a n t i n g a r e a u n d e r c o n t r a c t

i n t h e p r e v i o u s y e a r . I f th e A s s o c i a t i o n d e c i d e s to i n c r e a s e t h e a r e a

p l a n t e d , t h e i n c r e a s e i s a l l o c a t e d to member g ro w e rs who want to expand

p r o d u c t i o n . Should member g ro w e rs d e c id e n o t to expand p r o d u c t i o n

s u f f i c i e n t l y , t h e A s s o c i a t i o n may o f f e r th e e x t r a p l a n t i n g a r e a to new

g r o w e r s . T h is e x t r a a r e a i s u s u a l l y a l l o c a t e d on a f i r s t - c o m e f i r s t - s e r v e d

b a s i s .

About F e b r u a r y , t h e A s s o c i a t i o n e s t i m a t e s t h e q u a n t i t y o f e a r l y h a r v e s t

g i n g e r n eeded t o meet i t s s a l e s o r d e r s o f e a r l y h a r v e s t p r o c e s s e d g i n g e r

p r o d u c t s ( g i n g e r i n s y r u p , c r y s t a l l i s e d g i n g e r e t c . ) . A f t e r making

a l lo w a n c e f o r e a r l y h a r v e s t to n n a g e q u o t a s , t h e r e m a in in g to n n a g e r e q u i r e d

i s a l l o c a t e d to i n d i v i d u a l members a c c o r d i n g to t h e i r p r o p o r t i o n of th e

t o t a l a r e a p l a n t e d . Towards th e end o f A p r i l , th e A s s o c i a t i o n e s t i m a t e s

t h e t o t a l to n n a g e o f f i r s t l a t e h a r v e s t g i n g e r needed to f u l f i l l i t s s a l e s

o r d e r s . Again t h e A s s o c i a t i o n makes a l lo w a n c e f o r f i r s t l a t e h a r v e s t

to n n a g e q u o ta s and a l l o c a t e s th e r e m a in in g to n n a g e on a b a s i s s i m i l a r to

t h a t use d f o r t h e e a r l y h a r v e s t to n n a g e a l l o c a t i o n .

The A s s o c i a t i o n e s t i m a t e s th e q u a n t i t y o f second l a t e h a r v e s t g i n g e r

a v a i l a b l e and s p r e a d s d e l i v e r y from grow ers o v e r t h e J u l y to O c to b e r

p e r i o d . An a l lo w a n c e i s made f o r g i n g e r r e t a i n e d f o r s e e d . A ll g i n g e r

p ro d u ce d by members, e x c e p t t h a t r e t a i n e d f o r seed o r s o ld on t h e f r e s h

m a r k e t , i s p u r c h a s e d by t h e A s s o c i a t i o n .

The A s s o c i a t i o n e x p l a i n e d t h a t a grower can d i s p o s e of an a r e a q u o ta i n two

ways; t h e grow er can s e l l h i s q u o ta a lo n g w ith h i s p r o p e r t y , o r he can s e l l

t h e q u o t a s h a r e s to th e A s s o c i a t i o n a t $2 a s h a r e . Tonnage q u o ta s can be

t r a n s f e r r e d w i t h o u t la n d to members o f th e to n n a g e q u o ta h o l d e r ' s f a m i ly or

i n c l u d e d i n a p r o p e r t y s a l e . O th e rw ise th e y l a p s e .

For i n d i v i d u a l g r o w e rs , t h e d e c i s i o n to p a r t i c i p a t e i n th e A s s o c i a t i o n ' s

c o n t r o l scheme i s v o l u n t a r y . However, t h e r e i s l i m i t e d scope to p roduce

g i n g e r o u t s i d e th e A s s o c i a t i o n as i t o p e r a t e s th e o n ly p l a n t p r o c e s s i n g

g r e e n g i n g e r i n A u s t r a l i a . T h is f a c t o r f a c i l i t a t e s t h e e f f e c t i v e o p e r a t i o n

o f p r o d u c t i o n c o n t r o l s .

3 . 4 The D om estic M arket

The t o t a l a p p a r e n t co n su m p tio n i n A u s t r a l i a o f a l l form s o f g i n g e r , between

1976-77 and 1978-79, i s p r e s e n t e d i n T ab le 3 - 3 in g r e e n g i n g e r e q u i v a l e n t

( gge) t e r m s . I t h a s been n e c e s s a r y to make c e r t a i n a s s u m p tio n s to d e r i v e

many o f t h e f i g u r e s and t h e t a b l e sh o u ld be rea d i n c o n j u n c t i o n w ith

Appendix T a b le 5 ·2 and th e n o te s which accompany i t . N e v e r t h e l e s s , i t i s

c o n s i d e r e d t h a t t h e f i g u r e s s e t o u t below p r o v i d e a r e a s o n a b l e i n d i c a t i o n

o f th e s i z e o f th e d o m e s tic m a r k e t .

TABLE 3 ·5 : TOTAL APPARENT CONSUMPTION OF GINGER: 1976-77 TO 1979-80 ( to n n e s g r e e n g i n g e r e q u i v a l e n t )

P r o d u c t 1976-77 1977-78 1978-79 1979-80

G reen g i n g e r 300 400 500 500

G in g e r i n s y r u p )

C r y s t a l l i s e d g i n g e r ) 792 758 854 791

Dry g i n g e r 1 475 1 391 1 756 1 472

G i n g e r , i n p a c k s ,

i n l i q u i d 11 10 6 15

G i n g e r i n 57 66 103 237

O il o f g i n g e r - -

TOTAL 2 635 2 625 3 219 3 015

N o te : A ssum ptions use d i n d e r i v i n g t h i s t a b l e a r e p r e s e n t e d w i t h

Appendix T a b le 5 ·2 SOURCE: Q ueensland D epartm ent o f P r im a r y I n d u s t r i e s

As can be s e e n from t h e T ab le 3 ·3 c o n s u m p tio n i n A u s t r a l i a o f most g i n g e r

p r o d u c t s i n c r e a s e d o v e r th e p e r i o d 1976-77 to 1 9 7 7-78.

The l o c a l i n d u s t r y s u p p l i e d j u s t o v e r 50 p e r c e n t o f d o m e s tic r e q u i r e m e n t s

i n 1978-79· T h is was an u n u s u a l l y low p r o p o r t i o n b r o u g h t a b o u t by t h e

s h o r t a g e o f s u p p l i e s f o l l o w i n g t h e v e r y d r y c o n d i t i o n s e x p e r i e n c e d i n t h e

1978 s e a s o n . I n b o th 1976-77 and 1 9 7 7-78, t h e l o c a l i n d u s t r y s u p p l i e d o v e r

80 p e r c e n t o f d o m e s tic g i n g e r r e q u i r e m e n t s .

A lth o u g h demand f o r g r e e n g i n g e r has i n c r e a s e d o v e r r e c e n t y e a r s , t h e f r e s h

m a rk e t r e p r e s e n t s o n l y a l i m i t e d d i s p o s a l o u t l e t . F re s h m a rk e t s a l e s by

A s s o c i a t i o n members a r e e x p e c t e d to amount to a b o u t 350 to n n e s i n 1980

compared w i t h 300 to n n e s i n 1979·

D om estic s a l e s o f p r o c e s s e d p r o d u c t s by t h e A s s o c i a t i o n have expanded

s i g n i f i c a n t l y i n r e c e n t y e a r s . On a c a l e n d a r y e a r b a s i s , t h e v a l u e o f

s a l e s has r i s e n a t a r a t e o f 10 to 15 p e r c e n t p e r y e a r o v e r t h e l a s t f i v e

y e a r s , w ith th e e x c e p t i o n o f 1978 when s a l e s v a l u e f e l l by a b o u t 3 p e r

c e n t . A lth o u g h t h e r e was a c r o p s h o r t f a l l i n 1978 an i n c r e a s e i n p r i c e s

h e l p e d to o f f s e t th e e f f e c t o f th e s h o r t f a l l on s a l e s v a l u e .

C r y s t a l l i s e d and s y r u p e d g i n g e r a r e th e most i m p o r t a n t p r o d u c t s t h a t t h e

A s s o c i a t i o n s u p p l i e s to t h e d o m e s tic m a r k e t . These two i t e m s u s u a l l y

a c c o u n t f o r a b o u t 80 p e r c e n t , by v a l u e , o f th e A s s o c i a t i o n ' s d o m e stic

s a l e s . D ried g i n g e r a c c o u n t s f o r v i r t u a l l y a l l o f t h e r e m a in in g 20 p e r

c e n t . G inger i s s o l d i n b u lk to c u s to m e r s who u t i l i s e th e p r o d u c t in t h e i r

m a n u f a c t u r i n g p r o c e s s , w h ile o t h e r s a l e s a r e i n hamper o r r e t a i l packs to

d i s t r i b u t o r s , w h o l e s a l e r s and t o u r i s t s . The A s s o c i a t i o n ' s p r i c e s f o r b u lk

g i n g e r in sy r u p and d r i e d g i n g e r , a t A p r i l 1981, a r e p r e s e n t e d i n Appendix

T a b le 5 . 6 . The A s s o c i a t i o n does n o t pro d u ce g i n g e r i n b u t s e l l s d r y g i n g e r

to a few com panies f o r g i n g e r i n p r o d u c t i o n .

8

3 .5 E x p o r t s

The A s s o c i a t i o n began e x p o r t i n g p r o c e s s e d g i n g e r p r o d u c t s i n th e e a r l y

19 6 0 s . The e x p o r t m a rk e t h a s d e v e lo p e d i n t o a m a jo r o u t l e t f o r g i n g e r

p r o d u c t s and now a c c o u n t s f o r o v e r 50 p e r c e n t o f t h e volume and v a l u e of

A u s t r a l i a n p r o d u c t i o n . W ith t h e e x c e p t i o n o f 1978, e x p o r t s a l e s have grown

o v e r t h e l a s t f i v e y e a r s ( s e e Appendix T a b le 5 . 3 ) .

G in g e r i n s y r u p u s u a l l y a c c o u n t s f o r aro u n d 65 p e r c e n t o f the t o t a l e x p o r t

v a l u e and c r y s t a l l i s e d g i n g e r ab o u t 20 p e r c e n t . D rie d g i n g e r s a l e s

a c c o u n t f o r a p p r o x i m a t e l y 10 t o 15 p e r c e n t . Sm all q u a n t i t i e s o f g i n g e r i n

b r i n e have been e x p o r te d t o New Z e a la n d .

The p r i n c i p a l m a rk e t f o r a l l forms o f g i n g e r i s th e U n ite d Kingdom which

h a s a b s o r b e d betw een 50 t o 60 p e r c e n t o f A u s t r a l i a n e x p o r t s . T h is

p r o p o r t i o n i s e x p e c t e d to d e c l i n e s l i g h t l y a s demand i n c r e a s e s from o t h e r

c o u n t r i e s . D rie d g i n g e r i s e x p o r t e d to th e U n ite d S t a t e s , South A f r i c a ,

New Z e a la n d and Canada as w e l l as to t h e U n i t e d Kingdom.

The m a jo r c o m p e t i t o r s on t h e w orld m a rk e t a r e T aiwan, Hong Kong and th e

P e o p l e ' s R e p u b lic o f China i n t h e s y ru p e d and c r y s t a l l i s e d g i n g e r t r a d e and

I n d i a , N i g e r i a , S i e r r a Leone and J a m a ic a f o r d r i e d g i n g e r . The Q ueensland

D epartm ent o f P rim a r y I n d u s t r i e s r e p o r t e d t h a t A u s t r a l i a s u p p l i e s up to

h a l f o f t h e W e ste rn w o r l d ' s r e q u i r e m e n t s f o r g i n g e r i n syrup and

c r y s t a l l i s e d g i n g e r . F or d r i e d g i n g e r , th e A s s o c i a t i o n ' s e x p o r t s a c c o u n t

f o r l e s s th a n 1 p e r c e n t o f w orld t r a d e .

3 . 6 I m p o rt s

The volume and v a l u e o f im p o r ts c l e a r e d f o r home c o n sum ption s i n c e 1976-77

a r e g i v e n i n Appendix T a b le 5 . 4 . I m p o rt s o f g r e e n g i n g e r a r e s u b j e c t to

q u a r a n t i n e r e s t r i c t i o n s and have been i n s i g n i f i c a n t . ^

I m p o rt c l e a r a n c e s , p a r t i c u l a r l y f o r d r i e d g i n g e r p r o d u c t s , r o s e

s u b s t a n t i a l l y i n 1 9 7 8-79. T o t a l im p o r t s c o n s t i t u t e d 15 t o 20 p e r c e n t of

t h e d o m e s tic m a rk e t i n 1976-77 and 1977-78 b u t i n c r e a s e d to a b o u t 50 p e r

c e n t i n t h e f o l l o w i n g y e a r due to th e s h o r t f a l l i n th e 1978 l o c a l c r o p . A

l a r g e p r o p o r t i o n o f im p o r t s i n 1977-78 and 1978-79 was d r i e d g i n g e r which

e n t e r e d A u s t r a l i a u n d er b y - la w . I n 1979-80 i m p o r t s d e c l i n e d compared w ith

1 9 7 8-79.

A s i g n i f i c a n t amount o f F i j i a n g r e e n g i n g e r i s e x p o r te d to New Zealand

where i t i s p r o c e s s e d and a p o r t i o n e x p o r te d to A u s t r a l i a as some form o f

g i n g e r p r e s e r v e d by s u g a r . As can be se en from Appendix T a b le 5 . 4 im p o r ts

o f g i n g e r from New Z ealand u n d er ite m 2 0 . 0 4 .2 ( p r o b a b l y F i j i a n g i n g e r ) have

i n c r e a s e d in r e c e n t y e a r s .

1 Q u a r a n t i n e r e s t r i c t i o n s a r e imposed to p r e v e n t th e e n t r y o f d i s e a s e s

and p e s t s i n t o A u s t r a l i a . C o s ts a s s o c i a t e d w ith i n s p e c t i o n and

t e s t i n g o f im p o r te d rh iz o m e s f o r p o s s i b l e i n f e c t i o n , p lu s f r e i g h t and

q u a l i t y d e t e r i o r a t i o n d u r i n g s h ip m e n t, l i m i t im p o r ts to rhizom es

i n t e n d e d f o r p l a n t im provement p u r p o s e s .

9

A p a r t from F i j i th e main s o u r c e s f o r i m p o r t s o f s y r u p e d and c r y s t a l l i s e d

g i n g e r a r e Hong Kong and Taiwan, w h i l e d r i e d g i n g e r i m p o r t s come m a in ly

from I n d i a , N i g e r i a and J a m a i c a . G i n g e r i n i s im p o r te d m a in ly from th e

U n ite d Kingdom, t h e N e t h e r l a n d s and Norway. Thus g i n g e r p r o d u c t s o t h e r

t h a n g i n g e r i n a r e o b t a i n e d p r e d o m i n a n t l y from d e v e l o p i n g c o u n t r i e s .

I m p o r t s were u s u a l l y o f g i n g e r p r o d u c t s n o t p roduce d i n A u s t r a l i a ( e . g . ,

g i n g e r i n f a n c y j a r s ) o r o f lo w er q u a l i t y p r o d u c t s .

3 - 7 R e g i o n a l C o n s i d e r a t i o n s

I n t h e c o n t e x t o f A u s t r a l i a n a g r i c u l t u r e , g i n g e r grow ing i s a sm a ll

i n d u s t r y , b u t i n t h e Nambour a r e a i t makes an i m p o r t a n t c o n t r i b u t i o n to t h e

r e g i o n a l economy.

3 . 7 .1 Employment

D e s p i t e th e a d v a n c e s a c h ie v e d i n th e m e c h a n i s a t i o n o f farm o p e r a t i o n s , th e

g i n g e r i n d u s t r y r e m a in s l a b o u r - i n t e n s i v e . Labour r e q u i r e m e n t s a r e s e a s o n a l

and peak d u r i n g F e b r u a r y and March, t h e tim e o f e a r l y h a r v e s t . In t h i s

p e r i o d some 500 t o 600 p e o p l e a r e em ployed. Seed c u t t i n g , which o c c u r s

n o r m a l l y from A ugust to November, employs from 100 t o 200 p e o p l e . The

Q u ee nsla nd D ep a rtm en t o f P rim a r y I n d u s t r i e s e s t i m a t e d t h a t t h e farm s e c t o r

o f t h e i n d u s t r y p r o v i d e s employment f o r o v e r 200 p e r s o n s p e r y e a r on a f u l l

tim e e q u i v a l e n t b a s i s .

The p r o c e s s i n g o p e r a t i o n a l s o p r o v i d e s employment o p p o r t u n i t i e s . The

p r o c e s s i n g f a c t o r i e s c u r r e n t l y employ aro u n d 200 p e r s o n s on a f u l l - t i m e

b a s i s .

A l t e r n a t i v e employment o p p o r t u n i t i e s i n th e d i s t r i c t i n c l u d e g e n e r a l farm

l a b o u r i n g , s e r v i c e i n d u s t r i e s , and s m a ll s c a l e a g r i c u l t u r a l p r o c e s s i n g and

m a n u f a c t u r i n g e s t a b l i s h m e n t s .

3 . 7 . 2 Tourism

The g i n g e r i n d u s t r y p r o v i d e s t h e d i s t r i c t w ith a s i g n i f i c a n t t o u r i s t

a t t r a c t i o n . T o u r i s t f a c i l i t i e s p r o v id e d by th e A s s o c i a t i o n a t th e Buderim

f a c t o r y i n c l u d e a t h e a t r e t t e , an o b s e r v a t o r y f o r v ie w in g f a c t o r y

o p e r a t i o n s , p r o v i s i o n f o r c a r p a r k i n g and sh o p p in g o u t l e t s f o r t h e

i n d u s t r y ' s p r o d u c t s . I t i s p la n n e d to i n c o r p o r a t e t o u r i s t f a c i l i t i e s i n th e

new Y andina f a c t o r y .

The volume o f t o u r i s t t r a f f i c h as grown s u b s t a n t i a l l y o v e r t h e p a s t d e c a d e .

C u r r e n t l y , i t i s e s t i m a t e d t h a t 400 000 t o 500 000 t o u r i s t s v i s i t t h e

Buderim f a c t o r y each y e a r .

10

4. 4.1

ASSISTANCE FOE THE PRODUCTION OF GINGER AND GINGER PRODUCTS I n t r o d u c t i o n

The p r o d u c t i o n o f g i n g e r and g i n g e r p r o d u c t s i s a s s i s t e d "by Government i n a

number o f ways. T a r i f f s p r o v i d e a s s i s t a n c e to l o c a l p r o d u c e r s o f g i n g e r

p r o d u c t s a g a i n s t c o m p e t i t i v e i m p o r t s . P r o c e s s o r s o f g i n g e r and

m a n u f a c t u r e r s o f g i n g e r p r o d u c t s a r e e l i g i b l e to r e c e i v e e x p o r t i n c e n t i v e s .

A ls o , a t t i m e s , t h e y a r e e l i g i b l e f o r s u g a r p r i c e r e b a t e s f o r e x p o r t e d

s u g a r p r o d u c t s and th e y b e n e f i t from , o r a r e p e n a l i s e d by, th e d o m e s tic

p r i c i n g a r r a n g e m e n t s f o r s u g a r .

The A s s o c i a t i o n b e n e f i t s from Commonwealth and Q u ee n sla n d Government schemes to a s s i s t d e c e n t r a l i s a t i o n . In a d d i t i o n , Q ueensland Government

l e g i s l a t i o n e n a b l i n g p r im a r y p r o d u c e r s to o r g a n i s e t h e m a r k e tin g o f t h e i r

p r o d u c e i n f l u e n c e s t h e grow ing and m a r k e t i n g o f g r e e n g i n g e r . F i n a l l y ,

g r o w e rs o f g i n g e r a r e e l i g i b l e f o r a s s i s t a n c e p r o v id e d g e n e r a l l y f o r

p r im a r y p r o d u c t i o n .

4 . 2 T a r i f f A s s i s t a n c e

4 . 2 .1 S t r u c t u r e o f t h e t a r i f f

T a r i f f p r o v i s i o n s f o r t h e goods u n d e r r e f e r e n c e a r e s e t o u t i n Appendix 4 .

The r a t e s o f d u ty a r e com plex. Most G e n e ra l and P r e f e r e n t i a l r a t e s a r e

s l i d i n g s c a l e r a t e s , b e i n g a s p e c i f i c r a t e l e s s a p e r c e n t a g e o f t h e v a l u e

f o r d u t y . Many o f t h e s e r a t e s a l s o s p e c i f y minimum d u t i e s i n f i x e d r a t e

o r ad v a lo re m te r m s .

The c u r r e n t r a t e s o f d u ty a r o s e from Government c o n s i d e r a t i o n o f t h e 1964

r e p o r t o f t h e T a r i f f B o a r d . 2 3 In t h e c a se o f g i n g e r i n b r i n e , g i n g e r i n

s y r u p and c r y s t a l l i s e d g i n g e r , r a t e s o f d u ty were d e t e r m in e d so a s to

o f f s e t t h e d i f f e r e n c e b e tw e en t h e a s s e s s e d c o s t o f p r o d u c t i o n o f t h e

A u s t r a l i a n p r o d u c t and th e e q u i v a l e n t im p o r te d p r o d u c t .

In t h e c a s e o f ground g i n g e r and g i n g e r i n , r a t e s were s e t w ith t h e

i n t e n t i o n o f p r e v e n t i n g t h e e f f e c t o f the t a r i f f on d r y unground g i n g e r

b e i n g c irc u m v e n te d th r o u g h t h e i m p o r t a t i o n o f g i n g e r i n o r ground g i n g e r .

The s p e c i f i c r a t e component o f t h e s l i d i n g s c a l e d u ty on ground g i n g e r was

s e t c l o s e to t h a t o f d r y unground g i n g e r and t h e s p e c i f i c r a t e component o f

t h e t a r i f f on g i n g e r i n was s e t a t 14 ti m e s t h a t on d r y unground g i n g e r .

A s s i s t a n c e p r o v id e d th e g i n g e r i n d u s t r y i n 1964 was r e l a t i v e l y h ig h a t th e

t h e n p r e v a i l i n g w orld p r i c e s . At t h a t tim e t h e A u s t r a l i a n i n d u s t r y was

p r e d o m i n a n t l y o r i e n t e d tow ards s u p p l y i n g t h e d o m e s tic m a r k e t. I n r e c e n t

t i m e s , w ith the g e n e r a l r i s e i n g i n g e r p r i c e s , a s s i s t a n c e p r o v id e d th r o u g h

t h e t a r i f f h a s d e c l i n e d ( s e e T a b le 4 . 1 ) · F o r exam ple, i n 1 9 6 7-68, t h e

w e ig h t e d a v e r a g e nom inal r a t e o f a s s i s t a n c e on d o m e stic s a l e s was o v e r 20

p e r c e n t B y t h e p e r i o d 1976-77 to 1978-79 t h e a v e r a g e had f a l l e n to

a b o u t 1 p e r c e n t . In a d d i t i o n , th e i n d u s t r y now s e l l s a s i g n i f i c a n t

p r o p o r t i o n o f i t s o u t p u t on e x p o r t m a r k e t s . However, w h ile t h e o v e r a l l

i n c i d e n c e o f th e t a r i f f i n r e c e n t y e a r s h as bee n s m a l l , f o r some p r o d u c t s

i n some y e a r s i t h a s bee n h i g h .

2 T a r i f f B oard, G in g e r , O i l o f G in g e r , O l e o r e s i n o f G in g e r , R e p o rt No.

1721, AGPS C a n b e r r a , 1964. 3 As t h e t a r i f f i s d e s ig n e d to p r o v i d e a s s i s t a n c e to d o m e stic s a l e s , th e

a v e r a g e was c a l c u l a t e d by w e i g h t i n g th e i n d i v i d u a l nom inal r a t e s by t h e

u n a s s i s t e d v a l u e o f d o m e s tic s a l e s .

11

TABLE 4.1 : AD VALOREM INCIDENCE OF THE EXISTING TARIFF STRUCTURE : 1964-65 TO 1979-80 _______________ ( p e r c e n t )________________________________________________________________________________________________________________________________________

1964-65 1965-66 1966-67 1967-68 1968-69 1969-70 1970-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80

29 10

T a r i f f item 1964-65 1965-661966-67 1967-68

Green ginger 09.10.1 19 38 - -

Dry unground g inger (By-law) 0 9 .1 0 .2 0

. .

Dry unground g in g er 09 .1 0 .3 39 76 54 33

Ginger in packs

in 1 iquid 0 9 . 1 0 Λ NSR 25 24 8

Ginger NSA 09.1 0 .5 36 27 59 38

Gingerin 13.03.1 2 2 8 4

Ginger g l a c e or

C r y s t a l ! i z e d 2 0 . 0 4 . 2 33 6 38 21

Ginger in syrup 20.06.1 NSR 7 5 29

8 6 6

1 6

1 1

1 2

1 3 27

1 3 1 2

12 21

16 14 3 3 1 1

1 1

1 0

a Ad valorem equivalent duty - ac| ua^ .------- t - x 100

v a l u e f o r dut y o f imports

NSR: Not s e p a r a t e l y r e c o r d e d

. . I n d i c a t e s an a d va lorem dut y l e s s t h a n 1 pe r c e n t ; - i n d i c a t e s no i m p o r t s ; and 0 i n d i c a t e s t h a t t h e r e were impor ts but no duty was p a ya ble

4 . 2 . 2 O p e r a t i v e r a t e s o f d u t y and t h e e f f e c t o f p r e f e r e n t i a l r a t e s

I n a d d i t i o n to r a t e s f o r d i f f e r e n t p r o d u c t c a t e g o r i e s , t h e T a r i f f p r o v i d e s

s e p a r a t e r a t e s o f d u ty f o r t h e f o l l o w i n g c a t e g o r i e s :

. G e n e r a l ;

. P r e f e r e n t i a l ;

. D e v e lo p in g c o u n t r y (DC);

. D e c la r e d p r e f e r e n c e c o u n t r y (DPC);^

. Canada ;

. Papua New G u in e a ; and

. New Z e a l a n d .

There a l s o a r e s e p a r a t e s u b - d i v i s i o n s w i t h i n t h e New Z ealand r a t e s .

There h a s bee n l i t t l e t r a d e i n t h e p r o d u c t s u n d e r r e f e r e n c e from Canada,

Papua New G uinea o r , u n t i l r e c e n t l y , New Z e a la n d . Most im p o r ts o f d r y

g i n g e r u n d e r ite m 0 9 * 10.3 have been s o u r c e d from DCs o r DPCs and th e r a t e s

a p p l i c a b l e to t h e s e im p o r ts have e f f e c t i v e l y been th e p r o t e c t i v e r a t e s .

For d r y unground g i n g e r ( i t e m 0 9 - 1 0 . 3 ) o f DC o r i g i n t h e minimum d u t y r a t e

of 10 p e r c e n t h as u s u a l l y a p p l i e d . I n s p e c t i o n o f im p o r t d a t a a v a i l a b l e to

th e Commission r e v e a l e d t h a t ad v a lo re m e q u i v a l e n t s ( T ab le 4 -1 ) were h i g h

i n 1976-77 and 1979-80 b e c a u s e u n i t v a l u e s f o r d u ty were low. I n 1977-78

and 1978-79 t h e ad v alo re m e q u i v a l e n t s were low b e c a u s e u n i t v a l u e s f o r

d u ty were h i g h and s i g n i f i c a n t q u a n t i t i e s were im p o rte d from DPC s o u r c e s

(w hich a t t r a c t e d no d u ty ) and a s i g n i f i c a n t q u a n t i t y was im p o r te d u n d e r by­

law ( s e e Appendix T able 5. 4) . ^

I m p o rt s o f d r y ground g i n g e r ( i t e m 0 9 * 1 0 .5 ) h a v e been p r e d o m i n a t e l y o f USA,

UK and DC o r i g i n a t v a l u e s h i g h enough f o r t h e minimum d u t y r a t e o f $ 0 .0 1 4

p e r kg to a p p l y .

There i s p r o v i s i o n in th e t a r i f f f o r b y - la w e n t r y o f d r y unground g i n g e r

( i t e m 0 9 * 1 0 . 2 ) . A r e l a t i v e l y l a r g e q u a n t i t y e n t e r e d A u s t r a l i a u n d e r t h i s

ite m i n 1978-79 and a s m a l l e r amount i n 1977-78 ( s e e Appendix T ab le 5 * 4 )·

T his was to m eet t h e s h o r t f a l l from t h e 1978 A u s t r a l i a n c r o p . I n a d d i t i o n ,

b y - la w e n t r y a l s o was a llo w e d in 1978-79 u n d e r ite m s 0 9 . 1 0 . 3 ( d r y unground

g i n g e r ) and 0 9 * 1 0 .5 ( g i n g e r , NSA).

I m p o rt s o f g i n g e r i n ( ite m 1 3 - 0 3 . 1 ) h a v e , i n g e n e r a l , bee n s o u r c e d from

Europe and have n o r m a l ly bee n a t p r i c e s s u f f i c i e n l y h ig h f o r t h e minimum

d u ty r a t e of 10 p e r c e n t to a p p l y when o b t a i n e d from c o u n t r i e s o t h e r th a n

th e U n ite d K in g d o m .^ The r a t e o f d u t y a p p l i c a b l e h a s v a r i e d from y e a r to

y e a r , due to p r i c e v a r i a t i o n s and w h eth e r th e g i n g e r i n was im p o rte d from

t h e U n ite d Kingdom.^ I n t h e l a s t two y e a r s p r i c e s have been r e l a t i v e l y

low and im p o r ts have been c l e a r e d a t th e r a t e o f $ 8 .1 0 p e r kg l e s s 46 p e r 4 5 6 7

4 These a r e p r e f e r e n c e s e x te n d e d to c e r t a i n fo rm e r and e x i s t i n g B r i t i s h

C o l o n i e s . 5 O fte n th e v a l u e f o r d u t y o f d r y unground g i n g e r from DPC's h a s been

above t h e l e v e l a t which d u ty i s p a y a b l e . The r a t e has p r o v i s i o n f o r

an a l t e r n a t i v e s l i d i n g s c a l e r a t e to a p p l y w h ic h , i n p r a c t i c e , n e v e r

a p p l i e s .

6 G i n g e r i n im p o rte d from th e U n ite d Kingdom i s d u t i a b l e a t minimum r a t e s

o f f r e e and 2 p e r c e n t .

7 The r e c o r d e d im p o rt c l e a r a n c e s may be m i s l e a d i n g . I n s p e c t i o n o f im p o rt

d a t a a v a i l a b l e to th e Commission r e l a t i n g to ite m 13-03·1 i n d i c a t e s t h a t

im p o r t s o f goods o t h e r th a n g i n g e r i n a p p a r e n t l y have been i n c o r r e c t l y

r e c o r d e d u n d er t h i s it e m .

13

c e n t o f v a l u e ( G e n e ra l r a t e ) and $ 8 .1 0 p e r kg l e s s 56 p e r c e n t o f v a l u e

( P r e f e r e n t i a l r a t e ) l e a d i n g to t h e h i g h ad v a lo re m e q u i v a l e n t s shown i n

T ab le 4 · 1 · L i t t l e g i n g e r i n i s o b t a i n e d from DC s o u r c e s .

Green g i n g e r i m p o r t s ( i t e m 0 9 - 1 0 . 1 ) have been n e g l i g i b l e . G in g er i n p a c k s ,

i n l i q u i d ( i t e m 0 9 * 1 0 .4 ) and g i n g e r p r e s e r v e d by s u g a r ( i t e m s 2 0 . 0 4 . 2 and

2 0 . 0 6 . 1 ) have bee n o b t a i n e d p r e d o m i n a t e l y from DC s o u r c e s , u s u a l l y a t

p r i c e s above th e l e v e l where any d u t y i s p a y a b l e .

4 . 2 . 3 E f f e c t s o f t h e t a r i f f s t r u c t u r e

S l i d i n g s c a l e t a r i f f r a t e s o f t h e ty p e w hich a p p l y to th e goods u n d e r

r e f e r e n c e p r o v i d e maximum a s s i s t a n c e when im p o r t p r i c e s a r e low and l i t t l e

o r no a s s i s t a n c e when im p o r t p r i c e s a r e h i g h . Because s l i d i n g s c a l e d u t i e s

p r o v i d e t h i s b u f f e r a g a i n s t low im p o r t p r i c e s , t h e y e n a b l e d o m e s tic p r i c e s

to be m a i n t a i n e d a t more s t a b l e l e v e l s th a n o t h e r w i s e . I t was p o i n t e d out

by t h e A s s o c i a t i o n and t h e Q u ee nsla nd D epartm ent o f P rim a ry I n d u s t r i e s t h a t

w orld p r i c e s f o r g i n g e r p r o d u c t s i n g e n e r a l , and f o r d r i e d g i n g e r p r o d u c t s

i n p a r t i c u l a r , f l u c t u a t e m a rk e d ly d e p e n d in g upon v a r i a t i o n s i n w orld

s u p p l y . By p r o v i d i n g some s e c u r i t y a g a i n s t low w o rld p r i c e s , t h e t a r i f f

was se e n a s c o n t r i b u t i n g to t h e s t a b i l i t y o f p r i c e s r e c e i v e d by g r o w e r s .

W hile s l i d i n g s c a l e d u t i e s can p r o v i d e more s t a b l e d o m e stic p r i c e s , t h e y

may p r o v id e uneven l e v e l s o f a s s i s t a n c e between p r o d u c t s . I t i s p o s s i b l e

to s e t s l i d i n g s c a l e r a t e s o f d u t y so a s to p r o v i d e t h e same i n i t i a l l e v e l

o f a s s i s t a n c e to d i f f e r e n t p r o d u c t s , b u t movements w i t h i n p r i c e s o f

i n d i v i d u a l p r o d u c t s i n v a r i a b l y mean t h a t th e l e v e l s o f a s s i s t a n c e p r o v id e d

d i f f e r e n t p r o d u c t s w i l l c h a n g e . I n r e c e n t y e a r s , d r i e d g i n g e r h a s r e c e i v e d

more a s s i s t a n c e from th e t a r i f f th a n have g i n g e r p r o d u c t s p r e s e r v e d by

s u g a r ( s e e T a b le 4. 1 ) ·

4 - 3 E x p o rt I n c e n t i v e s

The A s s o c i a t i o n has r e c e i v e d E x p o rt Market Development G ra n ts and E x p o rt

E x p a n sio n G r a n t s . R e c e i p t o f a s s i s t a n c e i n t h e s e forms h a s been

c o n d i t i o n a l upon th e c o n t in u e d e f f o r t s o f th e A s s o c i a t i o n i n d e v e lo p in g

e x p o r t s a l e s and i t s s u c c e s s i n i n c r e a s i n g them.

4 . 3 . 1 E x p o rt Market Development G ra n ts Scheme

T h is Scheme, which h as been i n o p e r a t i o n s i n c e J u l y 1974, p r o v i d e s

a s s i s t a n c e to f i r m s and c o r p o r a t i o n s to d e v e lo p o v e r s e a s m a r k e t s . I t

p r o v i d e s t a x a b l e g r a n t s e q u a l t o 70 p e r c e n t o f e l i g i b l e e x p e n d i t u r e

i n c u r r e d on o v e r s e a s m arket r e s e a r c h and d e v e lo p m e n t, f a r e s i n c u r r e d i n

o v e r s e a s t r a v e l and t h e c o s t o f b r i n g i n g a g e n t s o r b u y e r s t o A u s t r a l i a

where pro m o tio n o f e x p o r t s a l e s i s th e o b j e c t i v e . The maximum g r a n t

p a y a b le to a c l a i m a n t i n any y e a r i s $100 000 p lu s an a d d i t i o n a l amount o f

up to $25 000 f o r e l i g i b l e e x p e n d i t u r e on Government sp o n so re d p r o m o t i o n s .

I n 1977-78 and 1978-79 t h e A s s o c i a t i o n r e c e i v e d g r a n t s o f $33 972 and

$48 244 r e s p e c t i v e l y .

14

4 . 3 - 2 E x p o rt E x p a n s io n G r a n t s Scheme

T h is Scheme was i n t r o d u c e d i n J u l y 1977 and amended i n 1981.® I t se e k s

t o e n c o u r a g e i n c r e a s e d e x p o r t s o f A u s t r a l i a n goods and s e r v i c e s . Cash

g r a n t s a r e p a i d f o r i n c r e a s e s i n e x p o r t e a r n i n g s . The i n c r e a s e , o r e x p o r t

e a r n i n g s i n c r e m e n t f o r p u r p o s e s o f t h e Scheme, i s a s s e s s e d as t h e

d i f f e r e n c e betw e en t h e v a l u e o f e x p o r t s i n a y e a r and t h e a v e r a g e v a l u e of

e x p o r t s o f the p r e c e d i n g t h r e e y e a r s . I n i t i a l l y th e g r a n t , w hich i s

t a x a b l e , was e q u a l to 15 p e r c e n t f o r an e x p o r t e a r n i n g s in c r e m e n t o f up to

$500 0 0 0 , t a p e r i n g to 10 p e r c e n t f o r a f u r t h e r e a r n i n g s in c r e m e n t from

$500 000 up t o $5 m i l l i o n , to 5 p e r c e n t f o r a f u r t h e r in c r e m e n t from

$5 m i l l i o n t o $10 m i l l i o n and 2 . 5 p e r c e n t f o r a f u r t h e r in c r e m e n t above

$10 m i l l i o n . The g r a n t r a t e s have been h a l v e d f o r 1 9 8 2 -8 3 · I n 1977-78 and

1978-79 "the A s s o c i a t i o n r e c e i v e d g r a n t s o f $72 306 and $33 575

r e s p e c t i v e l y .

4 . 4 S u g a r M a rk e tin g And P r i c i n g A rran g e m e n ts

S ugar i s an i m p o r t a n t i n g r e d i e n t i n t h e p r o d u c t i o n o f g i n g e r i n sy r u p and

d r a i n e d , g l a c e and c r y s t a l l i s e d g i n g e r . Thus s u g a r m a r k e tin g and p r i c i n g

a r r a n g e m e n t s have t h e p o t e n t i a l t o s i g n i f i c a n t l y i n f l u e n c e th e p r o d u c t i o n

o f g i n g e r p r o d u c t s . The A s s o c i a t i o n e s t i m a t e d t h a t s u g a r a c c o u n te d f o r h a l f

th e v a l u e o f g i n g e r i n s y r u p and g i n g e r p r o d u c t s c o n t a i n i n g s u g a r a c c o u n te d

f o r o v e r 80 p e r c e n t o f t h e v a l u e o f the A s s o c i a t i o n ' s o u t p u t i n 1 9 7 9 -8 0 .

No s u g a r i s use d i n th e m a n u f a c tu r e o f dry g i n g e r .

4 . 4 . 1 The S u g ar Agreement

The 1932 and s u b s e q u e n t S u g a r A greem ents betw een th e Commonwealth and Q u ee n sla n d Governments f o r t h e m a r k e t i n g o f A u s t r a l i a n s u g a r have had

p r o v i s i o n s f o r an embargo on s u g a r i m p o r t s , the d e t e r m i n i n g o f d o m e s tic

p r i c e s and t h e payment o f r e b a t e s to e x p o r t e r s o f approved p r o d u c t s

c o n t a i n i n g s u g a r .

The e x p o r t r e b a t e i s a v a i l a b l e to e x p o r t e r s o f goods c o n t a i n i n g s u g a r when

t h e d o m e s tic p r i c e o f r e f i n e d s u g a r ex c e e d s t h e A u s t r a l i a n e q u i v a l e n t o f

the im p o r t p a r i t y p r i c e . T hus, i t c o m p en sa tes e x p o r t e r s to th e e x t e n t t h a t

d o m e s tic s u g a r p r i c e s a r e h i g h e r th a n th e y would be i f t h e r e were no

c o n s t r a i n t s a g a i n s t i m p o r t s . T here i s no p r o v i s i o n f o r e x p o r t e r s to pay

e x t r a f o r s u g a r when th e d o m e s tic p r i c e i s below th e im p o rt p a r i t y p r i c e .

The S u g a r Agreem ents a l s o have i n c l u d e d p r o v i s i o n s f o r d o m e stic p r o c e s s o r s

o f f r u i t s to be e l i g i b l e f o r a p r i c e r e b a t e on s u g a r used i n p r o c e s s i n g

f r u i t . The r e b a t e i s c u r r e n t l y $15 p e r to n n e o f r e f i n e d s u g a r .

M a n u f a c t u r e r s o f g i n g e r p r o d u c t s a r e i n e l i g i b l e f o r t h i s p r i c e r e b a t e .

4 . 4 . 2 E f f e c t s on g i n g e r p r o d u c t i o n

The a r r a n g e m e n t s f o r d e t e r m i n i n g d o m e s tic s u g a r p r i c e s have a t l e a s t two

d i r e c t e f f e c t s f o r th e g i n g e r i n d u s t r y . F i r s t , when th e A u s t r a l i a n p r i c e

f o r s u g a r i s below w orld p r i c e s , the p r o d u c t i o n of p r o c e s s e d g i n g e r

p r o d u c t s c o n t a i n i n g s u g a r i s a d v a n ta g e d r e l a t i v e to a s i t u a t i o n where w orld

p r i c e s p r e v a i l . T h is c o u ld be e x p e c te d to e n c o u ra g e g i n g e r p r o c e s s o r s to

expand p r o d u c t i o n f o r b o th th e e x p o r t m a rk e t and th e do m e stic m a r k e t. 8

8 D ep a rtm en t o f Trade and R e s o u r c e s , Media R e l e a s e 8 1 /2 9 -

15

S e c o n d , when t h e A u s t r a l i a n p r i c e f o r s u g a r i s above w orld p r i c e s , t h e

d o m e s tic p r i c i n g o f s u g a r a c t s as a t a x on g i n g e r p r o d u c t i o n . In t h e s e

p e r i o d s th e c o s t o f p r o d u c in g g i n g e r f o r th e d o m e s tic m a rk e t i s r e l a t i v e l y

h i g h e r and may l e a d to l e s s g i n g e r p r o d u c t s b e i n g p ro d u ce d and s o ld on t h e

d o m e s tic m a r k e t . The e x p o r t r e b a t e a c t s a t such tim e s to re d u c e t h e

d i s a d v a n t a g e o f s u g a r p r i c e s to t h e g i n g e r i n d u s t r y on i t s i n t e r n a t i o n a l

m a r k e ts to t h e d i f f e r e n c e betw e en t h e im p o rt p a r i t y p r i c e o f s u g a r ( i f

t h e r e were no embargo) and t h e d o m e s tic p r i c e .

These d i r e c t e f f e c t s o f s u g a r p r i c i n g c ould be o f s i g n i f i c a n c e when th e

d o m e s tic s u g a r p r i c e i s g r e a t e r ( o r lo w e r ) th a n t h e w orld p r i c e f o r s e v e r a l

c o n s e c u t i v e y e a r s . T h is may h a v e been th e c a s e i n r e c e n t y e a r s when t h e

i n d u s t r y h a s b e n e f i t e d from t h e s u g a r p r i c i n g a r r a n g e m e n t s . For exam ple,

t h e Commission h a s e s t i m a t e d t h a t s i n c e 1976-77 t h e p r i c e p a id f o r r e f i n e d

s u g a r by t h e A s s o c i a t o n h a s b e e n up t o 25 p e r c e n t below t h e a v e r a g e e x p o r t

p r i c e o f r e f i n e d s u g a r . Over t h i s p e r i o d th e A s s o c i a t i o n a l s o r e c e i v e d

e x p o r t s u g a r r e b a t e s b e c a u s e t h e a s s e s s e d im p o rt p r i c e o f r e f i n e d s u g a r was

below th e d o m e s tic p r i c e f o r r e f i n e d s u g a r .

4 -5 D e c e n t r a l i s a t i o n A s s i s t a n c e

The A s s o c i a t i o n i n d i c a t e d t h a t i t had s u b s t a n t i a l b o r ro w in g s from th e

D epartm ent o f N a t i o n a l D e v e lo p m e n t's D e c e n t r a l i s a t i o n Scheme a t f a v o u r a b l e

r a t e s o f i n t e r e s t . A s s i s t a n c e a l s o had been r e c e i v e d from th e Q ueensland

D epartm ent o f D e c e n t r a l i s a t i o n and I n d u s t r y Development i n t h e form o f

f a v o u r a b l e te rm s f o r la n d i n t h e Y andina i n d u s t r i a l e s t a t e a c q u i r e d f o r th e

new p r o c e s s i n g f a c t o r y .

4 ·6 P r o d u c t i o n And M a rk e tin g C o n t r o l s

4 . 6 .1 Aims o f t h e c o n t r o l s

As o u t l i n e d i n C h a p te r 5, th e A s s o c i a t i o n c o n t r o l s a h i g h p r o p o r t i o n o f

p r o d u c t i o n w i t h i n th e i n d u s t r y . A cc o rd in g to t h e Q ueensland D epartm ent o f

P r im a r y I n d u s t r i e s t h e s e c o n t r o l s hav e a tw o - f o l d p u r p o s e . F i r s t , as

n e a r l y a l l t h e c r o p i s p r o c e s s e d , c r o p s i z e and h a r v e s t i n g must be l i n k e d

w ith p r o c e s s i n g c a p a c i t y . S econd, c o n s i d e r a t i o n must be g iv e n to th e

c a p a c i t y o f t h e m a rk e t to a b s o rb g i n g e r p r o d u c t s .

The A s s o c i a t i o n s t a t e d t h a t i t e x e r c i s e s c o n t r o l o v e r where i t s members can

grow g i n g e r and a d m i n i s t e r s th e s a l e o f q u o t a s . F arm ers must s a t i s f y t h e

A s s o c i a t i o n t h a t th e la n d upon which t h e y pro p o se to grow g i n g e r i s

s u i t a b l e and t h a t t h e r e a r e a d e q u a t e f a c i l i t i e s to i r r i g a t e t h e c r o p . The

l a t t e r c o n t r o l s were c o n s i d e r e d n e c e s s a r y to m a i n t a i n q u a l i t y and f o r

d i s e a s e c o n t r o l .

4 . 6 . 2 E f f e c t s o f th e c o n t r o l s

The A s s o c i a t i o n commands a s t r o n g m a rk e t p o s i t i o n w i t h i n b o th t h e d o m e stic

and t h e i n t e r n a t i o n a l m a rk e t f o r some g i n g e r p r o d u c t s , a s w e l l a s b e in g

t h e s o l e A u s t r a l i a n b uyer o f g r e e n g i n g e r f o r p r o c e s s i n g . The

A s s o c i a t i o n ' s s h a r e o f t h e d o m e s tic m a rk e t f o r g i n g e r p r e s e r v e d by s u g a r

has been a bout 90 p e r c e n t and f o r d r y g i n g e r , e x c e p t i n 1978-79, abo u t

80 p e r c e n t (See Appendix T able 5 · 2 ) . The Q ueensland D epartm ent o f P rim a r y

I n d u s t r i e s r e p o r t e d t h a t A u s t r a l i a s u p p l i e s up to h a l f o f th e W estern

w o r l d ' s r e q u i r e m e n t s f o r g i n g e r i n sy r u p and c r y s t a l l i s e d g i n g e r .

16

Because o f i t s s t r o n g m a rk e t p o s i t i o n , th e A s s o c i a t i o n i s w e ll p la c e d to

use i t s power a s a s i n g l e s e l l e r to d i f f e r e n t i a t e Between t h e d o m e s tic and

i n t e r n a t i o n a l m a rk e t and to b e n e f i t from th e t a r i f f on i m p o r t s . I f th e

A s s o c i a t i o n were to engage i n p r i c e d i f f e r e n t i a t i o n w i t h i n a n d / o r betw e en

e i t h e r t h e d o m e s tic or e x p o r t m a rk e t i t would need to l i m i t s a l e s o f g i n g e r

and p e r h a p s p r o d u c t i o n o f g r e e n g i n g e r . The A s s o c i a t i o n i s w e l l p l a c e d t o

m a i n t a i n such c o n t r o l s a s Q u ee nsla nd Government l e g i s l a t i o n i n d i r e c t l y

p r o v i d e s t h e A s s o c i a t i o n w i t h t h e power to c o n t r o l t h e a r e a p l a n t e d to

g i n g e r .

I t i s d i f f i c u l t to a s c e r t a i n th e e x t e n t to w hich th e A s s o c i a t i o n e x e r c i s e s

t h e m a rk e t power i t h a s . However, g i v e n t h e A s s o c i a t i o n ' s m a r k e t i n g power

and p r o v i d i n g i t were p r o f i t a b l e to engage i n p r i c e d i f f e r e n t i a t i o n i t i s

r e a s o n a b l e to assume t h a t t h e A s s o c i a t i o n would have engaged i n suc h p r i c e

d i f f e r e n t i a t i o n .

A p art from th e q u e s t i o n o f w h e th e r p r o d u c t i o n c o n t r o l s a r e used to i n c r e a s e

i n d u s t r y r e v e n u e , t h e a d m i n i s t r a t i o n o f such c o n t r o l s c o u ld i n h i b i t t h e

p r o d u c t i o n o f g i n g e r i n t h e most e f f i c i e n t way. I n g e n e r a l , w henever

p r o d u c t i o n i s c o n t r o l l e d by q u o t a s t h e most e f f i c i e n t means o f p r o d u c t i o n

would be e n a b le d by q u o ta s b e in g f r e e l y t r a n s f e r a b l e between g r o w e r s .

Under a sy ste m o f u n r e s t r i c t e d t r a n s f e r o f q u o t a s , p r o d u c e r s would be more

a b l e to r e s p o n d to c h a n g in g economic c i r c u m s t a n c e s . The Commission

b e l i e v e s t h e r e would be a d v a n t a g e s i n an a r r a n g e m e n t w hich a llo w e d t h e

r e a d y t r a n s f e r o f th e r i g h t to pro d u ce g i n g e r f o r t h e A s s o c i a t i o n - th e

t r a n s f e r b e i n g d i s t i n c t from any t e c h n i c a l a s s e s s m e n t o f th e s u i t a b i l i t y o f

a f a r m e r ' s la n d and f a c i l i t i e s f o r th e p r o d u c t i o n o f g i n g e r .

4 .7 A s s i s t a n c e F o r G in g e r Growing

A p a rt from th e a s s i s t a n c e p r o v id e d f o r g i n g e r p r o d u c t s , g e n e r a l a s s i s t a n c e

m e a su r e s a p p l y i n g to a l l r u r a l p r o d u c e r s a r e a v a i l a b l e to g i n g e r p r o d u c e r s .

These m e a su re s i n c l u d e incom e t a x i n c e n t i v e s and c o n c e s s i o n s ( suc h as

in v e s t m e n t a l lo w a n c e s and t a x a v e r a g i n g p r o v i s i o n s ) ; t h e n i t r o g e n o u s

f e r t i l i z e r s u b s i d y ; th e p h o s p h a te f e r t i l i z e r s b o u n ty ; f i n a n c e f o r r u r a l

r e s e a r c h and e x t e n s i o n ; and c o n c e s s i o n a l r a t e s o f i n t e r e s t f o r r u r a l

b o r r o w i n g . O f f s e t t i n g t h e s e a r e t h e a d d i t i o n a l c o s t s which a r e i n c u r r e d as

a r e s u l t o f t h e p r o t e c t i o n o f i n d u s t r i e s t h a t p r o v id e g i n g e r g ro w e rs w i t h

i n p u t s . The n e t e f f e c t on t h e g i n g e r i n d u s t r y o f th e m e asures p r o v id e d

g e n e r a l l y to r u r a l i n d u s t r i e s i s s m a l l .

4 . 8 E f f e c t i v e A s s i s t a n c e

One m easure o f t h e l e v e l o f a s s i s t a n c e r e c e i v e d by an i n d u s t r y i s th e

e f f e c t i v e r a t e o f p r o t e c t i o n . T h is m e a su re s th e n e t p r o t e c t i o n r e c e i v e d .

I t t a k e s i n t o a c c o u n t b o th th e s u b s i d y e f f e c t o f p r o t e c t i o n on an

i n d u s t r y ' s o u t p u t and t h e t a x e f f e c t o f p r o t e c t i o n on i t s i n p u t s . For

e xa m ple , t a r i f f s on com peting im p o r ts b e n e f i t p r o d u c e r s by e n a b l i n g them to

i n c r e a s e th e p r i c e o f t h e i r o u t p u t . However, to t h e e x t e n t t h a t t a r i f f s

i n c r e a s e th e p r i c e o f i n p u t s used i n th e p r o d u c t i o n p r o c e s s , p r o d u c e r s a r e

p e n a l i s e d . E f f e c t i v e r a t e c a l c u l a t i o n s t a k e b o th t h e s e e f f e c t s i n t o

a c c o u n t .

The Commission e s t i m a t e d t h a t , o v e r th e p e r i o d 1976-77 to 1 9 7 8-79, th e

p r o c e s s i n g o f g i n g e r r e c e i v e d l e v e l s o f e f f e c t i v e a s s i s t a n c e below 10 p e r

c e n t . The e s t i m a t e to o k i n t o a c c o u n t a s s i s t a n c e r e c e i v e d t h r o u g h th e

t a r i f f on d o m e s tic s a l e s o f g i n g e r , a s s i s t a n c e r e c e i v e d th r o u g h t h e s u g a r

p r i c i n g a r r a n g e m e n t s and a s s i s t a n c e on e x p o r t s .

17

d i s t r i b u t i o n s β They have a l s o been i n f l u e n c e d by t h e manner i n which

t h e A s s o c i a t i o n h a s managed i t s a f f a i r s to s t a b i l i s e t h e r e t u r n s p a i d to

g r o w e r s . Because o f t h e s e f a c t o r s i t would be d i f f i c u l t to c a l c u l a t e

a p r i c e which c o u ld be used f o r u n d e r w r i t i n g grow er r e t u r n s . For t h e s e

r e a s o n s t h e Commission w i l l n o t recommend t h a t p r i c e s to g i n g e r g r o w e rs be

u n d e r w r i t t e n .

5 . 2 . 1 Dry g i n g e r p r o d u c t s ( i t e m s 0 9 . 1 0 . 2 , 0 9 . 1 0 . 3 , o r 0 9 - 1 0 . 5 )

The main c o n c e r n o f t h e i n d u s t r y was t h e e f f e c t on l o c a l p r o d u c t i o n o f

i n t e r m i t t e n t i m p o r t s o f low p r i c e d g i n g e r p r o d u c t s , p a r t i c u l a r l y d r y g i n g e r

f o r t h e l e s s q u a l i t y c o n s c i o u s s e c t i o n o f t h e d o m e s tic m a r k e t . I t was

a rg u e d t h a t t h e e x i s t i n g t a r i f f s t r u c t u r e p r o v i d e s an e f f e c t i v e b u f f e r

a g a i n s t a d v e r s e p r i c e f l u c t u a t i o n s and t h e r e f o r e s h o u ld n o t be removed.

A p p ro x im a te ly h a l f t h e A s s o c i a t i o n ' s p r o d u c t i o n o f d r y g i n g e r i s e x p o r t e d .

E x p o r t s o f d r y g i n g e r r e c e i v e l i t t l e a s s i s t a n c e and compete on t h e

i n t e r n a t i o n a l m a rk e t w ith p r o d u c t s from o t h e r c o u n t r i e s . I t may seem

anom alous t h a t an e x p o r t o r i e n t e d i n d u s t r y which com petes s u c c e s s f u l l y on

t h e i n t e r n a t i o n a l m a rk e t w ith l i t t l e a s s i s t a n c e would r e q u i r e a s s i s t a n c e on

t h e d o m e stic m a r k e t . However, n o t a l l d r y g i n g e r p r o d u c t s produced by t h e

A s s o c i a t i o n a r e e q u a l l y c o m p e t i t i v e . On th e d o m e s tic m a rk e t th e

A s s o c i a t i o n s u p p l i e s d r y g i n g e r to two b ro ad m a r k e t s . One r e q u i r e s g i n g e r

o f a c o n s i s t e n t h i g h q u a l i t y and t h e o t h e r i s l e s s q u a l i t y c o n s c i o u s .

I n t e r n a t i o n a l l y and d o m e s t i c a l l y A u s t r a l i a i s c o m p e t i t i v e i n and s u p p l i e s

t h e q u a l i t y c o n s c i o u s m a r k e t . I t a p p e a r s t h a t t h e main a r e a o f im p o rt

c o m p e t i t i o n f o r A u s t r a l i a n d r y g i n g e r i s i n th e l e s s q u a l i t y c o n s c i o u s

m a rk e t where d r i e d g i n g e r from o t h e r c o u n t r i e s i s r e a d i l y s u b s t i t u t a b l e f o r

A u s t r a l i a n g i n g e r .

The d r y g i n g e r s e c t i o n o f t h e i n d u s t r y i s e x p o r t o r i e n t e d and compared w ith

many o t h e r A u s t r a l i a n i n d u s t r i e s i s e f f i c i e n t a s i t can compete on t h e

d o m e s tic and e x p o r t m a r k e ts w ith l i t t l e a s s i s t a n c e . Such a s s i s t a n c e a s i s

p r o v id e d th r o u g h t h e s l i d i n g s c a l e d u t y te n d s to p r o v i d e a b u f f e r a g a i n s t

t h e p o s s i b i l i t y o f a d v e r s e p r i c e f l u c t u a t i o n s even though s i g n i f i c a n t

a s s i s t a n c e h as n o t been r e c e i v e d from t h e t a r i f f i n r e c e n t y e a r s .

The Commission c o n s i d e r s t h a t t h e c u r r e n t s l i d i n g s c a l e r a t e s p r o v i d e d r y

g i n g e r p r o d u c t s w ith some s e c u r i t y a g a i n s t a r a p i d f a l l i n im p o r t p r i c e s

and t h a t a l t e r n a t i v e form s o f b u f f e r i n g th e m a rk e t a g a i n s t suc h f a l l s would

be a d m i n i s t r a t i v e l y d i f f i c u l t and p e r h a p s c o s t l y . To remove t h e e x i s t i n g

t a r i f f a s s i s t a n c e a t t h i s tim e c o u ld l e a d to a r e d u c t i o n i n t h e grow th o f

t h e g i n g e r i n d u s t r y . T h is would be u n l i k e l y to im prove community w e l f a r e

a s th e g i n g e r i n d u s t r y i s an e f f i c i e n t u s e r o f t h e co m m u n ity 's r e s o u r c e s .

The Commission t h e r e f o r e i n t e n d s to m a i n t a i n th e t a r i f f a s s i s t a n c e t h a t

h as been p r o v id e d to d r y g i n g e r p r o d u c t s . 9

9 O p e r a t in g p r o f i t s o f th e A s s o c i a t i o n which would be t a x a b l e a r e p a id to

g ro w e rs a s s p e c i a l p r o f i t d i s t r i b u t i o n s . Because t h e p r o f i t

d i s t r i b u t i o n s i n c l u d e p r o f i t s from o t h e r f a c t o r s as w e ll as t h e d i r e c t

s a l e o f g i n g e r p r o d u c t s i t i s d i f f i c u l t to a l l o c a t e t h i s p r o f i t to i t s

components which would i n c l u d e d i r e c t s a l e s o f g i n g e r p r o d u c t s .

20

As o u t l i n e d i n S e c t i o n 4 . 2 , t h e t a r i f f i s c o m p l i c a t e d by t h e p r o v i s i o n f o r

a minimum r a t e to o p e r a t e i f th e s l i d i n g s c a l e r a t e were to f a l l below t h a t

l e v e l . Most i m p o r t s o f d r y unground g i n g e r u n d e r ite m 0 9 - 1 0 . 5 h a v e

a t t r a c t e d t h e minimum d u t y r a t e o f 10 p e r c e n t ( i f o f DC o r i g i n ) o r no d u ty

( i f o f DPC o r i g i n ) , w h ile most im p o r t s o f g i n g e r NSA u n d e r ite m 0 9 . 1 0 . 5

have a t t r a c t e d t h e a l t e r n a t i v e minimum, d u ty r a t e o f $ 0 ,0 1 4 p e r k g . Such

minimum r a t e s o f d u ty a p p l y when im p o r t p r i c e s a r e h i g h e r th a n when s l i d i n g

s c a l e r a t e s a p p l y and would t h u s do l i t t l e to o f f s e t any e f f e c t s o f a d v e r s e

im p o r t p r i c e f l u c t u a t i o n s . To s i m p l i f y t h e t a r i f f t h e Commission w i l l

recommend t h a t goods c u r r e n t l y f a l l i n g w i t h i n ite m s 0 9 . 1 0 . 5 and 0 9 . 1 0 . 5 be

d u t i a b l e a t $ 0 .6 0 p e r kg l e s s 50 p e r c e n t o f t h e v a l u e f o r d u t y . T h is r a t e

i s a p p r o x i m a t e l y e q u a l to t h e s l i d i n g s c a l e r a t e p r e s e n t l y a p p l i c a b l e to DC

i m p o r t s . I t t h u s r e p r e s e n t s l i t t l e change to t h e e x i s t i n g a s s i s t a n c e

p r o v id e d a g a i n s t a d v e r s e im p o r t p r i c e f l u c t u a t i o n s .

Most i m p o r t s e n t e r e d u n d e r ite m 0 9 - 1 0 . 5 i n r e c e n t months have had a v a l u e

f o r d u t y i n e x c e s s o f $ 1 . 0 4 p e r kg and t h e r e f o r e have bee n d u t i a b l e a t

minimum r a t e s . The C o m m issio n 's recom m endation to make t h e s e im p o r t s

d u t i a b l e a t $ 0 .6 0 p e r kg l e s s 50 p e r c e n t would in v o l v e most i m p o r t s p a y in g

l i t t l e i f any d u ty as no d u ty would be p a y a b le when p r i c e s a r e above $ 1 .2 0

p e r k g . S i m i l a r l y , a t p r i c e l e v e l s o f r e c e n t m o n th s , most i m p o r t s u n d e r

ite m 0 9 - 1 0 . 5 would pay l i t t l e i f any d u ty a s r e c e n t w orld p r i c e s have been

i n e x c e s s o f $ 1 . 2 0 p e r kg.

B y-law e n t r y o f d r y unground g i n g e r ( ite m 0 9 - 1 0 . 2 ) f o llo w e d t h e

recom m endation i n t h e 1955 T a r i f f Board r e p o r t t h a t d r y unground g i n g e r

from B r i t i s h n o n - s e l f - g o v e r n i n g c o l o n i e s be a d m itte d f r e e o f d u t y , u n d er

D e p a r t m e n ta l b y - la w , when f o r use i n th e b rew ing o f g i n g e r b e e r . T h is

a r o s e from a c l a im t h a t J a m aican d r i e d g i n g e r was more s u i t a b l e th a n t h e

A u s t r a l i a n p r o d u c t f o r t h e m a n u f a c tu r e o f g i n g e r b e e r . No w i t n e s s gave any

e v i d e n c e on t h i s b y - la w a t t h e p u b l i c h e a r i n g . As t h e c u r r e n t b y - la w

p r o v i s i o n a l lo w s f o r e n t r y from any s o u r c e and A u s t r a l i a n d ry g i n g e r i s

used f o r m a n u f a c tu r in g g i n g e r b e e r , th e Commission c o n s i d e r s t h a t b y - la w

e n t r y o f g i n g e r would be a d e q u a t e l y co v e re d by g e n e r a l b y -la w p r o v i s i o n s .

The Commission t h e r e f o r e w i l l recommend t h a t th e b y - la w p r o v i s i o n f o r d r y

unground g i n g e r be d e l e t e d from S c h e d u le 1 o f t h e T a r i f f .

5 . 2 . 2 G inger p r o d u c t s p r e s e r v e d by s u g a r ( i t e m s 2 0 . 0 4 . 2 o r 2 0 . 0 6 . 1 )

G in g e r p r o d u c t s p r e s e r v e d by s u g a r a c c o u n t f o r o v e r 85 p e r c e n t o f th e

v a l u e o f t h e A s s o c i a t i o n ' s o u t p u t and c o n t r i b u t e most o f i t s e x p o r t

r e v e n u e . As t h e i n d u s t r y i s i n t e r n a t i o n a l l y c o m p e t i t i v e in t h e p r o d u c t i o n

o f g i n g e r p r o d u c t s p r e s e r v e d by s u g a r , i t i s n o t s u r p r i s i n g t h a t i t

h a s been a b l e to ho ld a p p r o x i m a t e l y 90 p e r c e n t o f t h e d o m e s tic m a rk e t w i t h

l i t t l e o r no a s s i s t a n c e .

I n e v i d e n c e s u b m i tte d s u b s e q u e n t to th e D r a f t R e p o rt h e a r i n g s t h e

A s s o c i a t i o n c la im e d t h a t r e c e n t l y g i n g e r had been im p o r te d from F i j i i n

i n c r e a s i n g q u a n t i t i e s and h a s been s e l l i n g a t a much low er p r i c e th a n th e

A u s t r a l i a n p r o d u c t . I t amended i t s o r i g i n a l r e q u e s t f o r t h e m a in te n a n c e

o f e x i s t i n g t a r i f f r a t e s f o r g i n g e r p r o d u c t s p r e s e r v e d by s u g a r to an ad

v alo re m t a r i f f o f 10 p e r c e n t from a l l s o u r c e s ( i n c l u d i n g New Z ealand and

F i j i ) which w ould, on t h e b a s i s o f th e v a l u e f o r d u ty i n r e c e n t y e a r s ,

i n c r e a s e a s s i s t a n c e .

21

< ■

Q u a n t i t i e s and u n i t v a l u e s o f i m p o r t s o f g i n g e r p r e s e r v e d by s u g a r from Hew

Z e a la n d and F i j i a r e s e t o u t i n T a b l e 5.1 f o r Ju ly - D e c e m b e r 1980 and

J a n u a r y - A p r i l 1981. The t a b l e shows t h a t im p o r ts o f g i n g e r i n syrup

i n c r e a s e d , e s p e c i a l l y from F i j i , i n t h e f i r s t f o u r months o f 1981 compared

w i t h t h e p r e v i o u s s i x months and u n i t v a l u e s d e c l i n e d . However, th e

q u a n t i t y o f i m p o r t s o f g i n g e r i n s y r u p from Hew Z e a la n d and F i j i (9*3

to n n e s i n t h e t e n months from J u l y 1 980 t o A p r i l 1981) was v e r y sm a ll

r e l a t i v e t o t h e t o t a l a p p a r e n t c o n s u m p tio n i n A u s t r a l i a o f g i n g e r p r e s e r v e d

i n s u g a r ( a b o u t 791 t o n n e s i n 1 9 7 9 - 8 0 ) . The q u a n t i t y o f c r y s t a l l i s e d

g i n g e r im p o r te d from Hew Z e a la n d and F i j i a c t u a l l y d e c l i n e d m a rke dly i n th e

f i r s t f o u r months o f 1981 compared w i t h t h e p r e v i o u s s i x m onths, though t h e

t o t a l q u a n t i t y o f i m p o r t s o f c r y s t a l l i s e d g i n g e r from t h e s e s o u r c e s f o r t h e

t e n months from J u l y 1980 t o A p r i l 1981 ( 3 6 .2 t o n n e s ) was . c o n s i d e r a b l y

g r e a t e r t h a n i n 1978-79 ( 2 0 . 9 t o n n e s ) and 1979-80 ( 9 . 4 t o n n e s ) .

TABLE 5.1 : IMPORTS CLEARED FOR HOME CONSUMPTIOH OF GIHGER PRESERVED BY SUGAR FROM NEW ZEALAND AND F I J I : JULY TO DECEMBER 1980 AND JANUARY TO APRIL 1981

Ju ly -D e c e m b e r* 1980

J a n u a r y - A p r i l * 1981

Q u a n t i t y kg

U n i t v a l u e

$

Q u a n t i t y kg

U n it v a l u e

$

G in g e r i n sy r u p

New Z ealand F i j i

1 300

405

2 .8 9

1 .72

1 944

5 630

1 .57 1 .68

C r y s t a l l i s e d g i n g e r

Hew Z ealand F i j i

31 232

150

2 .6 3 2 .5 5

4 831 2 .4 9

TOTAL 33 087 12 405

* S u b j e c t to r e v i s i o n .

SOURCE: Compiled from i n f o r m a t i o n s u p p l i e d by th e A u s t r a l i a n Bureau o f

S t a t i s t i c s .

The Commission does n o t c o n s i d e r t h a t t h i s i n c r e a s e d im p o r t c o m p e t i t i o n by

i t s e l f j u s t i f i e s an i n c r e a s e i n p r o t e c t i o n a g a i n s t i m p o r t s , b u t i t s u g g e s t s

t h a t t h e r e l e v a n t Commonwealth d e p a r t m e n t s sh o u ld be aware o f t h e r e c e n t

grow th i n i m p o r t s from Hew Z e a la n d and F i j i . The g i n g e r i n d u s t r y i s

e f f i c i e n t and even w ith c u r r e n t im p o r t c o m p e t i t i o n h o l d s a b o u t 90 p e r c e n t

o f t h e d o m e s tic m a rk e t f o r g i n g e r p r o d u c t s p r e s e r v e d by s u g a r . C o n s i d e r a b l e

q u a n t i t i e s o f c r y s t a l l i s e d g i n g e r and g i n g e r i n s y r u p a r e e x p o r t e d . These

e x p o r t s a r e i n c r e a s i n g and th e i n d u s t r y h as expanded r a p i d l y i n r e c e n t

y e a r s to a v a i l i t s e l f o f e x p o r t o p p o r t u n i t i e s . The C om m ission's p r e f e r r e d

a p p r o a c h to f o s t e r t h e dev e lo p m e n t o f e f f i c i e n t i n d u s t r i e s ( s u c h as t h e

g i n g e r i n d u s t r y ) i s n o t t o i n c r e a s e t h e i r l e v e l s o f p r o t e c t i o n a g a i n s t

i m p o r t s b u t to recommend r e d u c t i o n s i n a s s i s t a n c e to h i g h l y p r o t e c t e d

i n d u s t r i e s i n t h e economy. The Commission h as found no c i r c u m s t a n c e s

p e c u l i a r t o t h e g i n g e r i n d u s t r y which w a r r a n t d e p a r t u r e from t h i s p r e f e r r e d

a p p r o a c h . The Commission w i l l recommend t h a t g i n g e r p r o d u c t s p r e s e r v e d by

s u g a r be d u t i a b l e a t minimum r a t e s .

22

5 . 2 . 3 G i n g e r i n ( i t e m 1 3 · 0 3 ·1 )

A lth o u g h t h e A s s o c i a t i o n d o es n o t pro d u ce g i n g e r i n ( t a r i f f ite m 13.03*1 )>

i t do es s e l l d r i e d g i n g e r (400 to n n e s gge a n n u a l l y , o r a p p r o x i m a t e l y 7 p e r

c e n t o f p r o d u c t i o n ) to o t h e r f i r m s i n A u s t r a l i a f o r g i n g e r i n e x t r a c t i o n .

I m p o rts o f g i n g e r i n i n 1979-80 w ere 2367 kg ( o r 237 ton n e g g e ) , more th a n

f o u r tim e s t h e l e v e l o f c l e a r a n c e s i n 1976-77. The d o m e stic i n d u s t r y

s u p p l i e s a l m o s t t w o - t h i r d s o f t h e l o c a l m a rk e t f o r g i n g e r i n .

In c o n s i d e r i n g t h e a p p r o p r i a t e r a t e o f d u ty f o r ite m 13-03-1 t h e Commission

too k i n t o c o n s i d e r a t i o n t h e Commonwealth G o v ern m e n t's r e c e n t d e c i s i o n on

t a r i f f a s s i s t a n c e f o r o t h e r f l a v o u r i n g s and f r a g r a n c e s . ” '® These p r o d u c t s

a r e s u b j e c t to a t a r i f f o f 10 p e r c e n t . The Commission t h e r e f o r e w i l l

recommend t h a t t a r i f f ite m 13.03*1 be d u t i a b l e a t 10 p e r c e n t . T h is would

r e p r e s e n t a r e d u c t i o n i n t h e r a t e a p p l i c a b l e i n 1978-79 and 1979-80, b u t

would be above t h e r a t e i n p r e v i o u s y e a r s . I t would n o t p r o v i d e any

i n c e n t i v e to c irc u m v e n t t h e e f f e c t o f th e t a r i f f on d r y g i n g e r th r o u g h

i m p o r t s o f g i n g e r i n .

5 . 2 . 4 Green g i n g e r and g i n g e r , i n p a c k s , i n l i q u i d ( i t e m s 0 9 .1 0 .1 or

0 9 . 1 0 . 4 )

Green g i n g e r i s th e main i n p u t i n t o th e p r o d u c t i o n o f p r o c e s s e d g i n g e r

p r o d u c t s . T here have bee n no s i g n i f i c a n t i m p o r t s o f g r e e n g i n g e r i n r e c e n t

y e a r s .

Green g i n g e r p r o d u c t i o n i n A u s t r a l i a h a s a c o n s i d e r a b l e n a t u r a l a d v a n ta g e .

I t i s a h ig h b u l k , p e r i s h a b l e p r o d u c t . B e fo re e n t r y i n t o A u s t r a l i a i t must

s a t i s f y q u a r a n t i n e r e g u l a t i o n s . With such n a t u r a l a d v a n ta g e s i t i s n o t

s u r p r i s i n g t h a t im p o r t s o f g r e e n g i n g e r have been n e g l i g i b l e . The

Commission w i l l recommend t h a t g r e e n g i n g e r be d u t i a b l e a t minimum r a t e s .

I m p o rt s o f ite m 0 9 · 1 0 .4 c o m p rise m a in ly p r e s e r v e d g i n g e r i n ca n s o r j a r s .

Over t h e l a s t e i g h t y e a r s , im p o r ts u n d er t h i s ite m have a t t r a c t e d d u ty

e q u i v a l e n t to l e s s th a n one p e r c e n t ad v a l o r e m . The Commission w i l l

recommend t h a t im p o r ts u n d e r t h i s ite m be made d u t i a b l e a t minimum r a t e s .

5-3 E f f e c t Of Commission’ s Recommendations On The G in g e r I n d u s t r y

The C o m m issio n 's recom m endation to r e t a i n a s l i d i n g s c a l e r a t e o f d u ty f o r

d r y g i n g e r p r o d u c t s i s d e s ig n e d to p r o v id e a b u f f e r a g a i n s t a d v e r s e world

p r i c e f l u c t u a t i o n s . I t i s a n t i c i p a t e d t h a t th e s l i d i n g s c a l e d u ty w i l l

p r o v i d e b u f f e r i n g a s s i s t a n c e s i m i l a r to t h a t which c o u ld be p ro v id e d by an

u n d e r w r i t i n g a r r a n g e m e n t . T h u s, i t i s c o n s i d e r e d t h a t th e s l i d i n g s c a l e

d u ty w i l l c o n t i n u e to p r o v i d e p e r i o d i c a s s i s t a n c e a g a i n s t a d v e r s e p r i c e

f l u c t u a t i o n s .

The i n d u s t r y was m a in ly co n c e rn e d a b o u t th e p o s s i b l e e f f e c t s on i t s

d o m e s tic m a rk e t o f a d v e r s e p r i c e f l u c t u a t i o n s f o r g i n g e r , p a r t i c u l a r l y d ry

g i n g e r p r o d u c t s . I n r e c e n t y e a r s , t h e r e have been wide f l u c t u a t i o n s in

w orld p r i c e s f o r d r y g i n g e r p r o d u c t s b u t no a p p a r e n t downward t r e n d . I t i s

n o t i n t e n d e d , n o r a n t i c i p a t e d , t h a t t h e recommended s l i d i n g s c a l e d u ty w i l l

p r o v i d e d i r e c t a s s i s t a n c e i n most y e a r s . 1 0 11

10 D epartm ent o f B u s in e s s and Consumer A f f a i r s , Media R e le a s e No. 8 0 /1 1 6 ,

Government D e c i s i o n : Chemical P r o d u c t s P a r t B.

11 Because s l i d i n g s c a l e d u t i e s p r o v id e a b u f f e r a g a i n s t a d v e r s e p r i c e

f l u c t u a t i o n s th e y make r e t u r n s f o r d o m e stic p r o d u c e r s more s e c u r e . T his

would i n d i r e c t l y a s s i s t d o m e stic p r o d u c e r s even i f d u t i e s were r a r e l y

p a i d on im p o r t s as i t would have th e e f f e c t o f making p r o d u c ti o n

r e l a t i v e l y more s e c u r e a g a i n s t th e p o s s i b i l i t y o f low im p o rt p r i c e s .

23

Removal o f t a r i f f a s s i s t a n c e t o g i n g e r p r o d u c t s p r e s e r v e d by s u g a r i s

u n l i k e l y t o a f f e c t p r o d u c t i o n o r r e t u r n s from t h e s e i t e m s . The A s s o c i a t i o n

h as s i g n i f i c a n t m a rk e t power i n th e s e l l i n g o f t h e s e p r o d u c t s and i n r e c e n t

y e a r s t h e t a r i f f h a s p r o v id e d l i t t l e , i f an y , d i r e c t a s s i s t a n c e .

A s s i s t a n c e r e c e i v e d by t h e s e p r o d u c t s h a s been t h r o u g h e x p o r t a s s i s t a n c e

schemes and s u g a r p r i c i n g a r r a n g e m e n t s . As t h e Commission w i l l n o t

recommend a l t e r a t i o n s to t h e s e a s s i s t a n c e m e a s u r e s , t h e o v e r a l l a s s i s t a n c e

p r o v id e d g i n g e r p r e s e r v e d by s u g a r i s u n l i k e l y t o be a l t e r e d by t h e

C o m m issio n 's r e c o m m e n d a tio n s.

I n r e c e n t y e a r s t h e t a r i f f h as p r o v id e d l i t t l e a s s i s t a n c e to g r e e n g i n g e r

and g i n g e r , i n p a c k s , i n l i q u i d . The recom m endation t o make t h e s e i t e m s

d u t i a b l e a t minimum r a t e s t h e r e f o r e does n o t i n v o l v e any s i g n i f i c a n t change

i n t h e l e v e l o f a s s i s t a n c e r e c e i v e d and s h o u ld n o t a f f e c t t h e i n d u s t r y .

The C o m m issio n 's recom m endation to p r o v i d e g i n g e r i n w i t h a s s i s t a n c e o f 10

p e r c e n t i s d e s ig n e d t o p r o v i d e t h e same nom inal r a t e o f a s s i s t a n c e as i s

p r o v id e d to o t h e r f r a g r a n c e s and e s s e n c e s . The im p l e m e n t a t i o n o f t h i s

recom m endation would p r o v i d e a more n e u t r a l s t r u c t u r e o f a s s i s t a n c e t o

f r a g r a n c e s and e s s e n c e s and s h o u ld t h u s im prove community w e l f a r e .

5 . 4 O th e r M a t t e r s

I n C h a p te r 4 t h e Commission examined t h e im p a ct on t h e i n d u s t r y o f

p r o d u c t i o n c o n t r o l s and s u g a r p r i c i n g and m a r k e t i n g r e g u l a t i o n s . W hile

t h e r e was l i t t l e e v id e n c e to s u g g e s t t h a t such c o n t r o l s have impeded t h e

b e s t u s e o f r e s o u r c e s w i t h i n t h e i n d u s t r y , i t was s u g g e s t e d t h a t t h e most

e f f i c i e n t s t r u c t u r e o f th e i n d u s t r y would be e n a b le d by q u o t a s to grow

g i n g e r b e i n g made f r e e l y t r a d e a b l e amongst g r o w e r s . The Commission a l s o

o u t l i n e d th e im p a ct s u g a r p r i c i n g a r r a n g e m e n t s can have on r e s o u r c e u se

w i t h i n t h e i n d u s t r y .

The Government o f F i j i r e q u e s t e d a c c e s s t o t h e A u s t r a l i a n m a r k e t. Most

im p o r t s to A u s t r a l i a from F i j i have been co m prised o f g i n g e r p r o d u c t s

p r e s e r v e d by s u g a r . As t h e s e would be s u b j e c t t o minimum r a t e s o f d u ty

im p o r t s from F i j i would n o t be r e s t r i c t e d .

5 . 5 T a r i f f S i m p l i f i c a t i o n

As i n d i c a t e d i n s e c t i o n 4 . 2 . 2 t h e e x i s t i n g t a r i f f i s com plex, bo th i n term s

o f t h e s t r u c t u r e o f t h e t a r i f f and t h e m u l t i p l i c i t y o f r a t e s t h a t a r e

a p p l i c a b l e to im p o r ts o f g i n g e r and g i n g e r p r o d u c t s .

5 . 5 .1 Canada

T here i s no s i g n i f i c a n t t r a d e i n t e r e s t on th e p a r t o f Canada i n r e s p e c t o f

t h e goods u n d e r r e f e r e n c e and i t i s s u g g e s t e d t h a t t h e m a rg in o f p r e f e r e n c e

f o r Canada be removed.

5 . 5 . 2 New Z ealand

I n a l e t t e r d a te d 6 F e b r u a r y 1978, th e th e n M i n i s t e r asked t h a t the

Commission, when r e p o r t i n g on a r e f e r e n c e , a d v i s e as to t h e lo w e s t r a t e o f

d u ty which i s c o n s i s t e n t w ith th e need to p r o t e c t A u s t r a l i a n p r o d u c e r s

a g a i n s t c o m p e t i t i v e New Z ealand goods. As New Z ea lan d h a s no s i g n i f i c a n t

t r a d e i n t e r e s t i n th e goods u n d e r r e f e r e n c e t h e lo w e s t d u ty needed a g a i n s t

c o m p e t i t i v e New Z ea lan d goods would be f r e e . However, t h e Commission h a s

s u g g e s te d t h a t th e r e l e v a n t Commonwealth d e p a r tm e n t s sh o u ld be aware o f the

r e c e n t growth o f im p o r ts from New Z e a la n d .

24

5 . 5 . 3 DPC r a t e ite m 0 9 - 1 0 . 3

A ll DPC’ s , w i t h r e g a r d to t h e goods u n d e r r e f e r e n c e i n ite m 0 9 - 1 0 . 3 , a r e

d e v e l o p i n g c o u n t r i e s . T here seems t o be no r e a s o n to r e t a i n a s e p a r a t e

DPC r a t e and t h e Commission s u g g e s t s t h a t i t be removed.

5 · 5 · 4 Papua New Guinea

Commercial g i n g e r p r o d u c t i o n a p p a r e n t l y h as c e a s e d i n Papua New G uinea.

T h e r e f o r e Papua New G uinea i s u n l i k e l y to have a s i g n i f i c a n t t r a d e i n t e r e s t

i n t h e goods u n d e r r e f e r e n c e and t h e Commission s u g g e s t s t h a t minimum r a t e s

a p p ly to im p o r t s from t h a t c o u n t r y .

5 . 6 Customs V a l u a t i o n

The M i n i s t e r h a s asked t h e Commission to i n c l u d e i n a l l r e p o r t s

recom m endations f o r a p p r o p r i a t e l e v e l s o f a s s i s t a n c e u n d er t h e new Customs

V a l u a t i o n Agreem ent; suc h recom m endations a r e to be i n a d d i t i o n to

recom m endations b ased on t h e c u r r e n t v a l u a t i o n sy ste m .

The new Customs V a l u a t i o n Agreement i s a code d e v e lo p e d d u r i n g th e GATT

M u l t i l a t e r a l T ra de N e g o t i a t i o n s c o n c lu d e d i n 1979· The A u s t r a l i a n

Government h a s d e c id e d to ad o p t t h e c o d e , on a f r e e - o n - b o a r d b a s i s .

The C o m m issio n 's p ro p o se d recom m endations i n t h i s r e p o r t a r e n o t v a r i e d by

v i r t u e o f th e a p p l i c a t i o n o f th e Customs V a l u a t i o n Agreem ent.

25

6. STATUTORY REPORTING REQUIREMENTS

The I n d u s t r i e s A s s i s t a n c e Commission Act r e q u i r e s t h e Commission to r e p o r t

on c e r t a i n m a t t e r s when recommending a s s i s t a n c e t o an i n d u s t r y . The

s t a t u t o r y r e q u i r e m e n t s t o g e t h e r w ith t h e C o m m issio n 's r e s p o n s e s a r e s e t out

below .

( a ) The C o m m i s s i o n s h a l l r e p o r t on t h e l e v e l o f a s s i s t a n c e

r e q u i r e d to e n s u r e t h a t th e l e v e l o f a c t i v i t y and employment

i n th e i n d u s t r y o r group o r g ro u p s o f i n d u s t r i e s to w hich th e

r e p o r t r e l a t e s i s n o t l e s s t h a n t h a t which e x i s t e d a t t h e tim e

when th e r e f e r e n c e was m ade.

The i n d u s t r y c u r r e n t l y r e c e i v e s l i t t l e d i r e c t a s s i s t a n c e th r o u g h t h e t a r i f f

o r o t h e r governm ent m e a s u r e s . The i n d u s t r y has expanded r a p i d l y i n r e c e n t

y e a r s . Eor exam ple, w hereas i n 1975 A s s o c i a t i o n members grew 3871 to n n e s

o f g r e e n g i n g e r th e 1980 c r o p was a r e c o r d 6540 t o n n e s . A l a r g e p r o p o r t i o n

o f th e i n c r e a s e d p r o d u c t i o n h a s been e x p o r t e d . The r a p i d i n c r e a s e i n

p r o d u c t i o n i s e x p e c t e d to c o n t i n u e and t h e A s s o c i a t i o n i s c u r r e n t l y

p l a n n i n g m a jo r e x p a n s io n s i n t h e a r e a p l a n t e d to g i n g e r and i n p r o c e s s i n g

f a c i l i t i e s . Because th e growth has been a c h ie v e d w ith l i t t l e government

a s s i s t a n c e , t h e Commission c o n s i d e r s t h a t a m inim al l e v e l o f a s s i s t a n c e

would m a i n t a i n a c t i v i t y and employment i n th e g i n g e r i n d u s t r y .

( b) I f th e Commission recommends t h e g i v i n g to t h e i n d u s t r y o r

group o r g ro u p s o f i n d u s t r i e s o f a s s i s t a n c e t h a t would r e s u l t

i n a l e v e l o f a s s i s t a n c e l e s s th a n t h e l e v e l r e f e r r e d to i n

p a r a g r a p h ( a ) , i t s h a l l s t a t e i t s r e a s o n s f o r n o t recommending

a s s i s t a n c e t h a t would a v o id t h a t r e s u l t .

T he C o m m i s s io n e x p e c t s t h a t i t s r e c o m m e n d a t i o n s a r e u n l i k e l y t o r e d u c e

a c t i v i t y a n d e m p l o y m e n t i n t h e i n d u s t r y .

( c ) The C o m m i s s i o n s h a l l r e p o r t w h e t h e r , i n t h e v i e w o f t h e

C o m m i s s i o n , t h e s t r u c t u r e o f t h e i n d u s t r y o r o f t h e g r o u p o r

g r o u p s o f i n d u s t r i e s c a n be i m p r o v e d , a n d , i f s o , t h e m a n n e r

i n w h i c h , a n d t h e m e a s u r e s b y w h i c h t h e i m p r o v e m e n t c a n b e

a c h i e v e d a n d t h e c o n s e q u e n c e s o f s u c h i m p r o v e m e n t s .

The g i n g e r i n d u s t r y i s o n e o f A u s t r a l i a ' s m o re ·e f f i c i e n t i n d u s t r i e s . I t

r e c e i v e s l i t t l e g o v e r n m e n t a s s i s t a n c e a n d e x p o r t s a s i g n i f i c a n t p r o p o r t i o n

o f i t s o u t p u t . The i n d u s t r y i s c o n t r o l l e d t h r o u g h p r o d u c t i o n q u o t a s a n d

e n t r a n t s t o t h e i n d u s t r y m u s t s a t i s f y t h e A s s o c i a t i o n t h a t t h e i r l a n d i s

s u i t a b l e f o r t h e p r o d u c t i o n o f g i n g e r a n d t h e y h a v e s u f f i c i e n t w a t e r t o

i r r i g a t e t h e c r o p . T h e s e m e a s u r e s h a v e b e e n u s e d m a i n l y t o c o n t r o l t h e

g r o w i n g a n d p r o c e s s i n g o f t h e c r o p .

I n C h a p te r 5 t h e Commission o u t l i n e d s e v e r a l i n i t i a t i v e s w hich, i f

i n t r o d u c e d , would e n a b le th e s t r u c t u r e o f th e i n d u s t r y to be im p ro v e d .

F i r s t , th e s a l e o f q u o ta s on th e open m arket would f a c i l i t a t e more

e f f i c i e n t p r o d u c t i o n o f g i n g e r . S econd, d o m e stic p r i c i n g a r r a n g e m e n t s f o r

s u g a r sometim es d i s c r i m i n a t e a g a i n s t th e s a l e o f g i n g e r p r e s e r v e d by s u g a r

on t h e d o m e stic m a r k e t . A more m a rk e t o r i e n t e d p r i c i n g o f s u g a r f o r t h e

d o m e s tic m arket may f a c i l i t a t e a more e f f i c i e n t d evelopm ent o f th e

p r o c e s s i n g o f g i n g e r .

The C om m ission's view i s t h a t t h e s e c h a n g e s , i f im p le m e n te d , c o u ld l e a d to

an improved s t r u c t u r e o f th e i n d u s t r y .

26

(d) I f th e Commission recommends t h e g i v i n g , c o n t i n u a n c e o r

w ith d r a w a l o f a s s i s t a n c e t o an i n d u s t r y o r group o r g ro u p s o f

i n d u s t r i e s , i t s h a l l r e p o r t on t h e p r o b a b l e c o n s e q u e n c e s o f

t h e t a k i n g o f m e a su re s to g iv e e f f e c t t o t h o s e re c om m enda tions

i n c l u d i n g :

( i ) economic and s o c i a l c o n s e q u e n c e s ; and

( i i ) employment c o n s e q u e n c e s , b o t h g e n e r a l l y and i n p a r t i c u l a r

r e g i o n s .

As d i s c u s s e d i n C h a p te r 3 t h e growing and p r o c e s s i n g o f g i n g e r i s

c o n c e n t r a t e d i n t h e Nambour r e g i o n o f Q u ee n sla n d . The Commission does n o t

e x p e c t t h a t i m p l e m e n ta tio n o f i t s recom m endations would have an y a d v e r s e

econom ic, s o c i a l o r employment c o n s e q u e n c e s f o r t h i s r e g i o n . T h is i s

b e c a u s e th e Commission would n o t e x p e c t any r e d u c t i o n i n o u t p u t to f o l l o w

from a d o p t i o n o f i t s r e c o m m e n d a tio n s .

27

7 . RECOMMENDATIONS

The I n d u s t r i e s A s s i s t a n c e Commission recommends t h a t :

. d r y g i n g e r , f a l l i n g w i t h i n t a r i f f ite m 0 9 . 1 0 , be d u t i a b l e a t

$ 0 .6 0 p e r kg l e s s 50 p e r c e n t o f v a l u e f o r d u t y ;

. g i n g e r i n , f a l l i n g w i t h i n t a r i f f ite m 1 3 . 0 3 . 1 , be d u t i a b l e

a t 10 p e r c e n t ;

. o t h e r goods u n d er r e f e r e n c e be d u t i a b l e a t minimum r a t e s ; and

. t h e b y - la w p r o v i s i o n u n d e r S ch ed u le 1 o f t h e T a r i f f f o r d r y

unground g i n g e r f a l l i n g w i t h i n t a r i f f ite m 0 9 . 1 0 . 2 , be

w ith d ra w n .

These recom m endations a r e n o t v a r i e d by v i r t u e o f t h e a p p l i c a t i o n o f th e

v a l u a t i o n system to be a d o p t e d .

A t t e n t i o n i s drawn to th e C o m m issio n 's comments on:

. t a r i f f s i m p l i f i c a t i o n ( s e c t i o n 5 * 5);

. C a n ad a, New Z e a l a n d , Papua New G uinea, D e c la r e d P r e f e r e n c e

C o u n t r i e s and D e v e lo p in g C ou n try r a t e s o f d u t y ( s e c t i o n 5 · 5 ) ;

and

. t r a n s f e r a b i l i t y o f q u o ta s ( s e c t i o n 5 · 4 ) ·

R.G. MAULDON ...................................................................................... COMMISSIONER

F .G . ATKINS ........................................................................................ ASSOCIATE COMMISSIONER

CANBERRA, AUSTRALIAN CAPITAL TERRITORY 1 5 June 1981

28

APPENDIX 1

THE REFERENCE

INDUSTRIES ASSISTANCE COMMISSION ACT 1973

I , WALLACE CLYDE FIFE, M i n i s t e r f o r B u s i n e s s and Consumer A f f a i r s , h e r e b y :

( 1 ) i n p u r s u a n c e o f my pow ers u n d e r S e c t i o n 2 3 ( 1 ) o f t h e I n d u s t r i e s

A s s i s t a n c e Com mission Act 1973, r e f e r t h e f o l l o w i n g m a t t e r t o

t h e I n d u s t r i e s A s s i s t a n c e Commission f o r i n q u i r y and r e p o r t by

31 December 1981: w h e t h e r a s s i s t a n c e s h o u l d be p r o v i d e d t o t h e i n d u s t r y

c o n c e r n e d w i t h t h e p r o d u c t i o n i n A u s t r a l i a o f goods o f a k i n d

f a l l i n g w i t h i n i t e m s 0 9 - 1 0 .1 t o 0 9 - 1 0 - 5 ( i n c l u s i v e ) , 13-03-1>

2 0 - 0 4 - 2 , o r 2 0 . 0 6 . 1 i n S c h e d u l e 1 t o t h e Customs T a r i f f Act

1966, a s p r o p o s e d t o be a l t e r e d , a n d , i f s o , t h e n a t u r e and

e x t e n t o f s u c h a s s i s t a n c e .

( 2 ) s p e c i f y t h a t t h e Commission be f r e e t o t a k e e v i d e n c e an d , where

n e c e s s a r y , t o make rec o m m e n d a tio n s on an y m a t t e r s r e l e v a n t t o

i t s i n q u i r y u n d e r t h e r e f e r e n c e .

MINISTER FOR BUSINESS AND CONSUMER AFFAIRS

8 J u n e 1979

29

APPENDIX 2

A d d re s s

M/S 7 1 5 , K andanga, Q u e e n s la n d

P .O . Box 114, B u d e rim , Q u e e n s la n d

Customs H o u s e , Queen S t r e e t ,

B r i s b a n e , Q u e e n s la n d

9 B e a g l e S t r e e t , Red H i l l ,

A u s t r a l i a n C a p i t a l T e r r i t o r y

225 C l a r e n c e S t r e e t , Sydney,

New S o u th W ale s

558 Jesmond Road, F i g T re e P o c k e t ,

B r i s b a n e , Q u e e n s la n d

G. P .O . Box 4 6 , B r i s b a n e , Q u e e n s la n d

95 C e c i l S t r e e t , S o u th M e l b o u r n e , V i c t o r i a

P .O . Box 112, Croydon P a r k , New S o u th Wales

APPENDIX 3

REQUESTS AND SUGGESTIONS

Company o r O r g a n i s a t i o n R e p r e s e n t e d R e q u e s t s and S u g g e s t i o n s

A u s t r a l i a n Gold en G in g e r P r o p r i e t a r y

L im i te d

S u p p o r t t h e r e q u e s t made by t h e A s s o c i a t i o n a t t h e p u b l i c h e a r i n g s .

Buderim G in g e r G ro w ers' C o - o p e r a t i v e A s s o c i a t i o n L i m i t e d

The t a r i f f r em a in a s i t i s . ( S u b s e q u e n t t o t h e d r a f t r e p o r t h e a r i n g

t h i s was amended f o r t a r i f f i t e m s 2 0 . 0 4 . 2 and 2 0 . 0 6 .1 t o an ad

v a l o re m d u t y o f 10 p e r c e n t from a l l s o u r c e s . )

Government o f F i j i F i j i a n g i n g e r be a l l o w e d a c c e s s t o t h e A u s t r a l i a n m a r k e t .

Newlake G ra z i n g Company More r e s e a r c h be c o n d u c t e d i n t o t h e f a c t o r s t h a t c o n t r i b u t e t o

t h e s u c c e s s f u l p r o d u c t i o n o f g i n g e r .

Q u een slan d D ep a rtm en t o f P r i m a r y I n d u s t r i e s An ad v a l o re m d u t y o f aro u n d 10 p e r c e n t be a p p l i e d t o t a r i f f i t e m s

2 0 . 0 4 . 2 , 2 0 . 0 6 .1 and 0 9 - 1 0 . 4 ; and

t h e t a r i f f i t e m s 0 9 . 1 0 . 3 , 0 9 . 1 0 . 5 and 1 3 . 0 3 .1 be r e t a i n e d i n

t h e i r p r e s e n t f o r m .

However, i f i t s h o u l d be c o n s i d e r e d t h a t a s s i s t a n c e f o r d r i e d g i n g e r

be p r o v i d e d by way o f an ad v a l o re m t a r i f f , a t a r i f f i n e x c e s s o f 10

p e r c e n t s h o u l d be p r o v i d e d .

Socomin I n t e r n a t i o n a l F i n e Foods The s t a t u s quo be r e t a i n e d .

Winn Food P r o d u c t s S u p p o r t t h e r e q u e s t made by t h e A s s o c i a t i o n .

APPENDIX 4

TARIFF PROVISIONS

Goods t h e p r o d u c e o r m a n u f a c t u r e o f New Z ea lan d a r e f r e e o f d u t y e x c e p t

where i n d i c a t e d i n t h e New Z e a la n d R a te S c h e d u l e .

CUSTOMS TARIFF

R a t e s o f Duty

I te m Goods G e n e ra l P r e f e r e n t i a l

0 9 . 1 0 THYME, SAFFRON AND BAY LEAVES; OTHER SPICES:

0 9 . 1 0 .1 - Green g i n g e r , n o t i n l i q u i d

0 9 - 1 0 . 2 - Dry g i n g e r , u n g ro u n d , as

p r e s c r i b e d by b y - l a w

0 9 - 1 0 . 3 - Dry g i n g e r , u n g ro u n d , NSA

$ 0 ,0 5 5 $ 0,055

p e r kg p e r kg

DC: PNG: F re e

$ 0 ,0 5 5 p e r kg

F r e e , F r e e , and 2#

and 2# PNG: F re e

DC: F re e

$ 0 .5 8 $ 0 .5 8

p e r kg, p e r kg,

l e s s 46$ l e s s 46#

o f V; o f V; o r

o r , i f i f h i g h e r ,

h i g h e r , 10#

10#

DC: PNG: F re e

$ 0 .5 8 p e r kg,

l e s s 46#

o f V;

o r , i f

h i g h e r ,

10#

DPC: CAN:

$ 0 .7 7 $ 0 . 5 8 p e r kg,

p e r kg, l e s s 56# o f V

l e s s 78#

o f V;

o r , i f

h i g h e r ,

$ 0 .5 8 p e r kg,

l e s s 59#

o f V

32

TARIFF PROVISIONS C o n t 'd CUSTOMS TARIFF

R a t e s o f D u t y

I t e m G o o d s G e n e r a l P r e f e r e n t i a l

0 9 . 1 0 . 4 - G in g e r , i n p a c k s , i n l i q u i d

0 9 . 1 0 . 5 - G in g e r , NSA

$0 .2 9 $ 0 .2 9

p e r kg, p e r k g ,

t o t a l to t a l

w e i g h t , w e i g h t ,

l e s s l e s s

37.5% 37.5%

o f V; o f V; o r , i f

o r , i f no d u ty

no d u ty a p p l i c a b l e

a p p l i c a b l e - F r e e , and

- F r e e ,

and 2%

2%

DC: PNG:

$ 0 .2 9 $ 0 .2 9

p e r kg, p e r k g ,

t o t a l t o t a l

w e i g h t , w e i g h t ,

l e s s l e s s

37.5% 3 7 .5 $

o f V o f V

$ 0 .5 8 $ 0 .5 8

p e r kg, p e r kg,

l e s s l e s s

41% o f 47% o f

V; o r , V; o r , i f

i f h i g h e r , $0,014

h i g h e r , $0,014 p e r kg

p e r kg

DC: PNG:

$ 0 .5 8 $ 0 ,5 6 6

p e r kg, p e r k g ,

l e s s l e s s

41% o f 51* o f

V; o r ,

i f

V

h i g h e r , CAN: $0 ,0 1 4 $ 0 ,5 6 6 p e r kg,

p e r kg l e s s 51 % o f V

1 3.05 VEGETABLE SAPS AND EXTRACTS; PECTIC SUBSTANCES, PECTINATES AND PECTATES; AGAR-AGAR AND OTHER MUCILAGES AND THICKENERS, DERIVED

FROM VEGETABLE PRODUCTS:

33

TARIFF PROVISIONS C o n t 'd

CUSTOMS TARIFF

R a t e s o f D u ty

I t e m G oods G e n e r a l P r e f e r e n t i a l

1 5 .0 3 .1 - G i n g e r i n $ 8 .1 0 $ 8 .1 0

p e r kg, p e r kg,

l e s s l e s s

\6% o f 56$ o f V; o r i f

V; o r , no d u ty i s

i f a p p l i c a b l e -

h i g h e r , \0% F r e e , and 2%

DC: F re e PNG: F re e

2 0 .0 4 FRUIT, FRUIT-PEEL AND PARTS OF PLANTS, PRESERVED BY SUGAR, WHETHER IN DRAINED, GLACE OR CRYSTALLISED FORM:

$0.41 $0.41

p e r kg, p e r kg,

l e s s l e s s

3 7 .5 # 31.3%

o f V; o f V; o r i f

o r , i f no d u ty i s

no du ty a p p l i c a b l e -

i s F r e e , and 2%

a p p l i c a b l e F r e e , and 2%

DC: $0.41 p e r kg,

l e s s

31-5% o f V

PNG: F re e

2 0 .0 6 FRUIT OTHERWISE PREPARED OR PRESERVED, WHETHER OR NOT CONTAINING ADDED SUGAR OR SPIRIT:

34

TARIFF PROVISIONS C o n t ’ d

CUSTOMS TARIFF

R a t e s o f D u t y

I t e m G o o d s G e n e r a l P r e f e r e n t i a l

2 0 . 0 6 .1 - G in g e r i n s y r u p $ 0 .2 9 $ 0 . 2 9

p e r kg, p e r kg,

t o t a l t o t a l

w e i g h t , w e i g h t ,

l e s s l e s s

37.5% 37.5%

o f V; o f V; o r , i f

o r , i f no d u ty i s

no d u t y a p p l i c a b l e -

i s F r e e , and 2%

a p p l i c a b l e - F r e e ,

2%

and

DC: PNG:

$ 0 .2 9 $ 0 . 2 9

p e r kg, p e r kg,

t o t a l t o t a l

w e i g h t , w e i g h t ,

l e s s l e s s

37-5% 37.5%

o f V o f V

35

TARIFF PROVISIONS C o n t ' d

NEW ZEALAND RATE SCHEDULE

Item Goods New Z e a lan d R a te

0 9 .1 0 .1 A l l goods $ 0 ,0 5 5 p e r kg,

l e s s 10$ o f V

0 9 . 1 0 . 4 Goods i n p a c k s n o t e x c e e d i n g 46 l i t r e s :

P r e s e r v e d i n b r i n e F re e

Not p r e s e r v e d i n b r i n e

O t h e r :

2 4 . 5 $ , l e s s

$ 0 ,0 9 7 p e r k g ,

t o t a l w e i g h t ;

o r , i f lo w e r ,

$ 0 .2 9 p e r kg,

t o t a l w e i g h t ,

l e s s 5 2 .5 $ o f V

P r e s e r v e d i n b r i n e F r e e

Not p r e s e r v e d i n b r i n e $ 0 .2 9 p e r kg,

t o t a l w e i g h t ,

l e s s 5 2 .5 $ o f V

0 9 . 1 0 . 5 Goods p u t up f o r r e t a i l g a l e $ 0 ,5 6 2 p e r kg,

l e s s 52$ o f V;

o r , i f l o w e r ,

$ 0 ,5 7 8 p e r k g ,

l e s s 62$ o f V

R em ainder F re e

2 0 . 0 4 . 2 A l l goods $0.41 p e r kg,

l e s s 5 2 .5 $ o f V

2 0 .0 6 .1 Goods i n p a c k s n o t e x c e e d i n g 45-5 l i t r e s 4 2 . 5 $ , l e s s

$ 0 ,0 9 7 p e r k g ,

t o t a l w e i g h t ; o r ,

i f l o w e r , $ 0 .2 9

p e r kg, t o t a l

w e i g h t , l e s s

5 2 .5 $ o f V

Rem ainder $ 0 .2 9 p e r kg,

t o t a l w e i g h t ,

l e s s 5 2 .5 $ o f V

36

APPENDIX 5

STATISTICS

TABLE 5.1 : GINGER PRODUCTION BY TYPE OF HARVEST: 1975 TO 1981 ( t o n n e s - g r e e n g i n g e r )

H a r v e s t / u s e 1975 1976 1977 1978 1979 1980 1981

E a r l y h a r v e s t 1 593 1 578 1 657 1 679 2 224 3 104 3 934

1 s t l a t e h a r v e s t 303 211 376 320 602 316 490®

2nd l a t e h a r v e s t 1 285 1 952 1 218 571 1 079 1 420 2 100®

Green m a rk e t 90 100 150 200 300 500 500®

G i n g e r f o r s e e d 600 700 750 800 1 000 1 200 1 100®

TOTAL 3 871 4 541 4 151 3 570 5 205 6 540 8 124®

e E s t i m a t e .

SOURCE: Buderim G in g e r G ro w e rs ' C o - o p e r a t i v e A s s o c i a t i o n L i m i t e d .

37

TABLE 5 . 2 : TOTAL APPARENT CONSUMPTION OF GINGER: ( t o n n e s , g r e e n g i n g e r e q u i v a l e n t )

1 9 7 6 - 7 7 TO 1979-80

1976-77 1977-78 1978-79 1979-80

E s t i m a t e d d o m estic s a l e s Imports

E s t i m a t e d d o m es t ic

T o t a l s a l e s Imports

E s t i m a t e d d o m e s t ic

T otal s a l e s Imports

E s t i m a t e d d o m e s t ic

T o t a l s a l e s Imports T o t a l

Green g i n g e r 3

Ginger in s y ru p '5

C r y s t a l l i s e d ginger*5

Dry g i n g e r 3

Ginger in packs in

l i q u i d

300

739

1 247

G i n g e ri n

O i l o f g i n g e r

42

11

228

11

57

f

300 400

41

400

792 693 24 758

1 475 1 066 325 1 391

11 • 10 10

57 - 66 66

- - - -

2 635 2 159 4662 625

500

740

373

68 )

500 500

5 5 ]

500

4 6 ) 854 704 3 2 ) 791

383 1 756 1 081 391 1 472

6 6 - 15 15

103 103 - 237 237

- - - - »

606 3 219 2 285 730 3 015 TOTAL 2 286 349 1 613

a Green g i n g e r - t h i s e s t i m a t e i n c l u d e s an a ll o w a n c e f o r i n t e r s t a t e s a l e s by growers who a r e n o t members o f t h e A s s o c i a t i o n .

b Syruped and c r y s t a l l i s e d g i n g e r - as a number o f o r g a n i s a t i o n s produce c r y s t a l l i s e d g i n g e r from p u r c h a s e s o f g i n g e r in s y r u p , i t i s n o t p o s s i b l e t o e s t i m a t e

d o m e s t ic s a l e s o f c r y s t a l U s e d and s y r u p e d g i n g e r s e p a r a t e l y ; a c o n v e r s i o n r a t e o f 1 t o 1 from green t o p r o c e s s e d form has been u s e d .

c Dry g i n g e r - th e c o n v e rs i o n r a t e s used a r e 9 . 4 t o 1 f o r d r i e d whole r o o t and 6 . 7 t o 1 f o r s l i c e d and ground g i n g e r ; i t has been assumed t h a t 20 p e r c e n t o f

d r i e d g i n g e r i s s o l d as d r i e d whole r o o t and 80 p e r c e n t as d r i e d s l i c e d and ground g i n g e r .

d G i n g e r, in p a c k s , in l i q u i d - t h i s r e l a t e s t o T a r i f f Item 0 9 . 1 0 . 4 and i t has been assumed t h a t i m p o r t s under t h i s Item number a r e g i n g e r in b r i n e with a

c o n v e r s i o n r a t e o f 1 t o 1.

e G i n g e ri n - g i n g e r used f o r t h e m a n u f a c tu r e o f g i n g e r i n in A u s t r a l i a would be acco u n ted f o r in t h e e s t i m a t e d c o n s u m p t io n o f d r i e d g i n g e r ; f o r im p o r te d g i n g e r i n ,

a c o n v e r s i o n r a t e o f 100 t o 1 has been u s e d .

f O i l o f g i n g e r - i t a p p ear s t h a t t h i s p r o d u c t i s n o t produced in A u s t r a l i a ; i m p o r ts a r e n o t s e p a r a t e l y r e c o r d e d b u t i n d u s t r y s o u r c e s a r e o f t h e o p i n io n t h a t

i m p o r ts a r e m inim al.

SOURCE: Queensland Departm ent o f P r im a ry I n d u s t r i e s .

TABLE 5 . 3 : EXPORTS OF PROCESSED GINGER : 1 9 7 2 - 7 3 TO 9 MTHS-MARCH 1 9 8 1

U w t r y 1572-73 197 3 -7 4 1974-75 1 ^ 5 - 7 6 1976-77 157 7 -7 8 1978-79 1 9 7 9 -8 0 9 " t h s - l a r c h 1981*

I'OQO kg $•000 kg $ '0 0 0

• j r g e r p r e s e r v e d

-I 1 . . 2 Γ 3

C anada 4 432 5

.y 50 269 56

lSA 62 032 52

C t - e r 19 737 18

4 764 5 9 956 13

- - 7 131 9

137 563 130 116 728 162

25 461 25 31 155 40

34 074 28 16 487 20

11 617 13 n 212 21

3 619 13 18 513 29

48 908 88 77 04? 131

30 706 44 31 796 50

14 539 20 16 164 21

12 825 24 10 240

12 073 19 29 605

93 431 172 125 207

11 924 22 18 780

37 912 56 29 022

19 19 419 39 30 017 80

54 47 040 90 37 190 88

253 126 313 282 159 547 404

41 15 695 32 26 029 70

62 26 311 56 46 043 114

212 854 234 778 293 326

G in g e r o th e rw is e

p r e p a r e d o r

p r e s e r v e d 6

C anada 45 336 34 46 682 39 48 898 53 20 695 27 33 199 44 54 040 74 28 619

N e th e rla n d s 107 094 60 43 204 33 19 099 18 31 511 41 21 111 30 280 283 301 159 613

S A f r ic a 85 795 57 124 229 96 114 720 106 118 085 131 44 686 55 56 975 77 61 355

y 836 683 561 547 351 389 701 215 560 452 015 493 766 617 695 749 195 651 733 397

;

s : 90 459 55 50 540 31 - - 3 625 4 - - - - -

O th e r 7 986 6 19 514 10 22 118 12 2 463 3 22 479 28 30 154 40 64 655

44 52 304

180 175 620

92 101 5=1

616 745 708

14 28 180

100 9 3 1 9 5

75 215 162 613

37

146

61 945 114

327 649 491

111 959 182

566 404 710

16 954 27

7 140 86 446 174

70T.-L 1 156 572 367 012 930 671 647 266 936 430 219 278 ] 208 1 059 409 1 046 1 196 588 1 45 5 ] 178 493 1 706

a £ , s t r a i i a - i E x p o rt C o c c jo ity C l a s s i f i c a t i o n r„ i;b e r 0 5 3 .2 0 .2 1 to 1977-78 and 0 5 8 .2 0 .2 1 from 1973-79 to y e a r to d a t e ,

b A u s tr a lia - . E x o o rt Commodity C l a s s i f i c a t i o n number 0 5 3 .9 0 .0 2 to 1977-78 and 0 5 8 .9 9 .0 3 from 1978-79 to y e a r to d a t e .

* F i g u r e s a r e p r e l i m i n a r y and s u b j e c t to r e v i s i o n .

SOURCE: ABS. O v e rs e a s T ra d e .

2 206 10 839

20 500 44 990

22 818 38 710

693 2 029

1979-80 10 m ths ■ - Apr 81

Q u a n t i t y V alue Q u a n t i t y V alue

kg $Afob kg SAfob

2 601 4 541 5 432 11 272

1 605 2 148 5 901 4 694

7 645 9 998 13 624 15 582

1 769 4 523 2 467 6 771

12 93 62 564

1 059 8 831 680 4 464

1 871 3 156 1 944 5 825

16 562 33 290 30 110 49 172

1 275 34 3 H

1 092 11 507

2 250

275

52 040

7 526

2 367 45 821 2 525 59 566

7 410 18 160 150 383

4 712 23 288 5 454 27 454

2 010 4 327 36 063 94 279

17 412 29 998 20 000 33 862

600 2 538 883 1 347

32 144 78 211 62 550 157 325

15 105 58 129 24 267 104 443

39 204 118 069 46 675 182 777

613 1 349 9 715 18 350

54 922 177 547 80 657 305 570

1980 TABLE 5 .5 : GINGER : NUMBER OF FARMING ENTERPRISES BY SIZE : QLD : SEASON

Area o f G in g e r Number

Over 16 h e c t a r e s 2

Over 12 t o 16 h e c t a r e s 1

Over 8 t o 12 h e c t a r e s 8

Over 4 to 8 h e c t a r e s 9

Over 2 t o 4 h e c t a r e s 12

2 h e c t a r e s and u n d e r 19

T o t a l number o f grow ers 51

S o u r c e : Q ueensland D epartm ent o f P rim a r y I n d u s t r i e s .

TABLE 5 .6 : GINGER PRICES AT APRIL 1981a

Bulk G in g e r I n S yrup $ p e r kg

F i r s t q u a l i t y - whole r o o t 2.005

F i r s t q u a l i t y - d ic e d ( c r y s t a l l i s i n g c u t ) 1.859

F i r s t q u a l i t y - d i c e d ( s t a n d a r d c h o c o l a t e c u t ) 2.005

F i r s t q u a l i t y - d ic e d ( s p e c i a l c u t ) 2.090

F i r s t q u a l i t y - s m a l l d ic e d 1.750

Young stem t i p s o r s m a ll s l i c e d 1.584

Second q u a l i t y - p u lp e d 1.506

D rie d G in g e r D ried whole r o o t 2.980

D ried s l i c e d 2.160

D rie d ground 2 .3 0 0

a F o r g i n g e r s u p p l i e d by Buderim G in g e r G row ers' C o - o p e r a t i v e A s s o c i a t i o n

L im i te d . P r i c e s a r e on t h e b a s i s o f c . i . f . c a p i t a l c i t i e s e x c e p t P e r t h

f o r which 3 c e n t s p e r k i lo g r a m i s added.

SOURCE: Buderim G in g e r G row ers' C o - o p e r a t i v e A s s o c i a t i o n L im ite d .

42