Climate policy to hurt agriculture in short term
http://business.theage.com.au/climate-policy-to-hu [2008-7-10]
Tag : ruminant fodder
THE Federal Government's climate change policy will have a muchbigger initial impact on agriculture than climate change itself. That was a key message delivered to a farming and climate changeconference by Mick Keogh, executive director of the Australian FarmInstitute. Agribusiness Gippsland organised the conference inWarragul. Mr Keogh said the introduction of an emissions trading scheme (ETS)in 2010 would be "a significant challenge in the short to mediumterm".
"The details of the ETS are being developed, and the role thatagriculture will play is not yet clear," he said. "Despite this,there are already some obvious implications for the sector."
Agriculture makes up 16% of Australia's greenhouse gas emissions,with ruminant livestock the biggest contributor at 10%, figuresshow. Mr Keogh said energy and energy-related input costs would increasesignificantly, and render the industry less competitive.
Other inputs — fuel, fertiliser, freight and chemicals —would also go up more than they would have otherwise.
"Nitrogen fertilisers will come under increased scrutiny because oftheir greenhouse impacts," he said. Energy and energy-dependent costs now made up 46% of farm inputsfor wheat and crops, but less for beef (15.1%) and sheep (21.2%),he said.
Mr Keogh said these higher costs would make it more difficult tocompete internationally against developing countries, such asBrazil, Argentina and countries in Eastern Europe, which faced nocarbon price for 10-15 years. Also, upmarket food retailers, such as Tesco in Britain, aimed tohave 70,000 products include a carbon footprint within three years."There is pressure from retailers for accreditation," he said.
THE Federal Government's climate change policy will have a muchbigger initial impact on agriculture than climate change itself. That was a key message delivered to a farming and climate changeconference by Mick Keogh, executive director of the Australian FarmInstitute. Agribusiness Gippsland organised the conference inWarragul. Mr Keogh said the introduction of an emissions trading scheme (ETS)in 2010 would be "a significant challenge in the short to mediumterm".
"The details of the ETS are being developed, and the role thatagriculture will play is not yet clear," he said. "Despite this,there are already some obvious implications for the sector."
Agriculture makes up 16% of Australia's greenhouse gas emissions,with ruminant livestock the biggest contributor at 10%, figuresshow. Mr Keogh said energy and energy-related input costs would increasesignificantly, and render the industry less competitive.
Other inputs — fuel, fertiliser, freight and chemicals —would also go up more than they would have otherwise.
"Nitrogen fertilisers will come under increased scrutiny because oftheir greenhouse impacts," he said. Energy and energy-dependent costs now made up 46% of farm inputsfor wheat and crops, but less for beef (15.1%) and sheep (21.2%),he said.
Mr Keogh said these higher costs would make it more difficult tocompete internationally against developing countries, such asBrazil, Argentina and countries in Eastern Europe, which faced nocarbon price for 10-15 years. Also, upmarket food retailers, such as Tesco in Britain, aimed tohave 70,000 products include a carbon footprint within three years."There is pressure from retailers for accreditation," he said.
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