IA-CEPA – Value Proposition for industryPat O’Shannassy – CEO, Grain Trade Australia

September 2020

Outline

GTA Role

Indonesia grain trade relationship

IA-CEPA

Attributes of Australian Grain

Quality Assurance in grain supply chain

Strengthening relationships

Didorong Industri dan Kerangka Kerja Terkelola untuk Memfasilitasi PerdaganganIndustry Driven Self Managed Framework to Facilitate Trade

Pembiakan &

Klasifikasi

Breeding &

Classification

Standar

Perdagangan Biji-

Bijian

Grain Trading

Standards

Aturan & Kontrak

Perdagangan

Trade Rules &

Contracts

Layanan

Penyelesaian

Sengketa

Dispute Resolution

Services

Akses Dagang &

Pasar

Trade & Market

Access

Kapabilitas &

Kemampuan

Industri

Industry Skills &

Capability

Didorong oleh Sinyal Pasar untuk memastikan fokus pada pelanggan & produkakhir

Driven by Market Signals to ensure customer & End Product Focus

Mencerminkan Persyaratan dan kemampuan dalam:1. Peraturan2. Sektor Produksi3. Rantai Pasokan4. Sektor Konsumtif

Reflect Requirements and capabilities in:1. Regulation2. Production Sector3. Supply Chain4. Consumptive Sector

Meningkatkan Efisiensi Pasar. Memastikan

keyakinan dalam transaksi komersial

dengan menyediakan hukum yang kuat

Improves Market Efficiency. Ensures

confidence in commercial dealings

by providing legal rigour

Melandasi Pengaturan & Performa Kontrak

Underpins Contractual Arrangements &

Performance

Terlibat dengan pembuat kebijakan untuk memastikan

perdagangan dan akses yang wajar & setara ke

pasar domestik & global

Engaging with Policy makers to ensure fair & equitable trade and access to domestic &

global markets

Meningkatkan kapasitas Industri

dengan menyediakan pelatihan kejuruan dan

program pengembangan

Increase Industry capacity by providing

training and development programs

Didoro ng Industri dan terkelola Industry driven and managed

A Strong grain relationship between Indonesia & Australia

IA CEPA – Feed grains Collaboration

Collaborative Strategic Grain Partnership

www.graintrade.org.au/fact_sheets

Key Strengths of Australian Grains

Reliability of Supply Chain

Reliable Counterparties

Clean, Safe Environment

High Product Quality

Supply Chain Quality

Assurance

Code of Practice

Contracts & Trade Rules

Proximity to Market

Grains for Animal Feed – major value considerations

• Nutrients vs Ingredients, particularly

▪ Energy (Metabolisable energy or ‘ME’)

▪ Protein / digestible amino acids• Other characteristics

▪ Anti-nutritional factors

▪ Mycotoxin and other toxin contamination

▪ Physical features (such as grain size, structural fibre, pellet durability)

Source: www.dairyaustralia.com.au

Nutritional Guide

For more information refer to AEGIC & AGIC Asia 2019 Presentations

Kunci Utama Biji-Bijian AustraliaKey Strengths of Australian Grains

1) Diproduksi dengan teknologi Inovatif dalam lingkungan yang bersih dan amanProduced with innovative technology in clean, safe environment

2) Kualitas Produk yang TinggiHigh Product Quality

3) Sistem jaminan mutu di dalam rantai pasokannyaQuality assurance systems within its supply chain

4) Keandalan rantai pasokannyaThe reliability of its supply chain

5) Kode Praktik di seluruh industriIndustry wide Code of Practice

6) Keandalan dari mitranya serta respek terhadap kontrak dan aturan dagangThe reliability of its counterparties and respect for contracts and trade rules

7) Kedekatan ke Asia berarti waktu perjalanan lebih cepatProximity to Asia meaning faster voyage time

Activities & Processes in the Supply Chain

Quality Assurance processes are in each link the Supply Chain

Accreditation Systems and program enhance and strengthen the chain

QA is established by:

Australian Government

Industry at Port

Supplemented by other Industry actions in the supply chain

Australian Grain Industry – Code of Practice

CONFIDENCE DRIVES MARKETS!!!

On Farm Guidelines

• Produce with innovative technology

• Research & Development

• Manage weed seeds, pests and diseases

• Comply with regulations on chemical use

• Follow Grain Growing Guide

Produce grain according to Industry Standards

Value is more than Price

Value

Price

Quality

Reliability

Safety

Finance & Credit

Efficiency

• Supply• Logistics• Supply Chain• Counterparty

• Moisture• Foreign Material• Soundness

• Operational• Food• Compliance• SPS

• Yield• Extraction• Consistency

• Payment Terms• Payment Process• Cost of finance• Insurance

Confidence Creates Value

Risk is priced in every transaction…

$$$ Risk Premium

Level of Confidence

Value created through lower risk premium

$ Risk Premium

Supply Quality

Knowledge & Understanding

Logistics Contractual Payment

Quality Assurance

Safety

Delivery

Opportunities for Mutual Cooperation to enhance value

Connections▪ Build substantive and enduring connections

between both governments and industries

• Trade Association cooperation

Capacity building ▪ mutual benefit through identifying capacity building

opportunities

• mutual commitment to regional e.g. APEC NTM engagement strategies

• Technical training programs

Collaboration and knowledge ▪ sharing in areas of mutual benefit

Collaborative research & development:

▪ improving product understanding, applications & utilisation

▪ increasing production capacity & stability

▪ improving quality

▪ modernising the grain system

▪ food safety

Improve understanding and harmonisation

▪ Quality Assurance Systems

▪ Sampling & testing methodology/ processes

Nilai dari Kerangka Kerja IndustriValue from Industry Framework

Kepastian

Surety

Keandalan

Reliability

Reputasi

Reputation

Keyakinan

Confidence

Nilai Pelanggan

Customer Value

Ton DitransaksikanTonnes Transacted

Summary

IA-CEPA Strategic Partnership

Compliment not Compete

Inherent value from Australian products

Value more than Price

Confidence via Framework

Work on strengthening Enduring Relationships

Trade & Collaboration is Mutually Beneficial!!