NFF president Jock Laurie said that it is in the interests of farmers to see a strong and vibrant manufacturing industry in Australia, particularly food manufacturing, without compromising Australia’s position against protectionism.
Laurie said: “Agriculture is one industry that has learned how to become globally competitive through policies that focus on productivity rather than jeopardising our position in the international trading community through trade-distorting subsidies.”
He added: “The high Australian dollar and the multi-speed economy are placing considerable pressures on our local manufacturing sector, just as they are for farmers. The NFF supports a floating dollar and recognises that monetary policy can be an effective means of keeping inflation stable and low, ensuring that the Australian economy grows sustainably without eroding our living standards.
“However, we are concerned that the Reserve Bank of Australia pays little regard to the impact of monetary policy on the Australian dollar in setting interest rates, and as a result, little regard to the fortunes of Australia’s trade-exposed industries like agriculture and manufacturing. The NFF argues that now is the time for the RBA to broaden its mandate in setting interest rates to take into account the impact of its decisions on the Australian dollar.”
Source: NFF
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