A Memorandum of Understanding that will forge closer agricultural ties with Brazil’s largest state, Sao Paulo, will have significant benefits for Western Australia, according to Agriculture Minister Kim Chance.
A Memorandum of Understanding that will forge closer agricultural ties with Brazil’s largest state, Sao Paulo, will have significant benefits for Western Australia, according to Agriculture Minister Kim Chance.
But WA Farmers Federation president Trevor De Landgrafft adopted a more cautious approach.
Mr Chance, who visited Brazil and Argentina last month, said the MOU would particularly help WA primary producers develop close ties with a “huge potential market”.
“Sao Paulo has a population of 36 million and the highest gross domestic product of any Brazilian state at $A425 billion,” Mr Chance said.
“Like WA, Sao Paulo is a thriving agricultural region, with almost two million hectares of crops under production. To be able to forge such a strong relationship with a thriving state will be of enormous benefit to WA.”
Sao Paulo’s main agricultural products are oranges, sugar cane, corn, coffee, soybeans, tomato, manioc, potato, herbaceous cotton, onion, beans, grape, rice, banana and rubber.
Mr De Landgrafft said that while Sao Paulo was a logical choice and made sense for WA because of similar climates, the investment had to be there for both parties.
“In this case, while there is some benefit for investment, the opportunity of information flowing back to us will not be as likely,” he said.
“We need to make sure we don’t give stuff away too cheaply.
“What we are known for is our ability to get access to markets; we do this through our quality insurance and quarantine.
“So while it is reasonable to share our intellectual property, there has to be a significant benefit for us also because, inevitably, it is that information that they will use to compete against us.”
Of particular interest to Mr Chance is that Sao Paulo is the world’s largest producer of ethanol from sugar cane.
“I will be evaluating the possibilities for WA’s Ord River region,” he said.
Sao Paulo is also the world’s largest orange producer and accounts for 33 per cent of fruit production and 25 per cent of vegetable production in Brazil. It is the fourth largest producer of coffee in the world and the third largest in Brazil.
Key areas of co-operation between the two states will include exchange of data and information on issues relevant to plant and food production, including animal and plant health and promotion, dairy farming, breeding and animal nutrition.
The MOU will also involve exchange of research, scientific and technical information, development and exchange on technical know-how on farm machinery, equipments and technology, and encouragement of joint ventures and collaboration between private sector companies from both governments for investment in plants, food production and livestock.
Mr Chance said the State Government was forging international relationships needed to ensure WA’s agricultural sector remained one of the most important sectors for the state economy.
Mr De Landgrafft said Brazil and Argentina – with its significant soils and climates – were the nations of the future.
