Free trade agreement a bitter disappointment for Australian cattle producers

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By Will Evans, Cattle Australia CEO

Volatility is nothing new for Australian agriculture but the start of 2026 has been a sharp reminder of how quickly global events can change the operating landscape for producers.

The conclusion of the Australia European Union Free Trade Agreement (EUFTA) was bitterly disappointing for the entire red meat industry.

CA has called out the agreement for what it is: an arrangement that completely fails Australian producers who were promised a fair deal and significantly greater market access. The deal we have ended up with achieves neither of these things.

After almost a decade of negotiations devoted to cracking the highest value market in the world, the result delivered by the Federal Government is miles short of the finishing line. The outcome leaves Australian agriculture worse off in the EU market than ever before, and preferences critical minerals and other industry sectors that substantively don’t exist yet in this country.

In this time of global disruption, the importance of trade diversity is clear. This fact only further underscores the reason industry pushed so hard for a strong outcome with the EU and why today, we are left disillusioned with what we’ve got. While we remain well positioned in many of our other major export markets, in a country with a cost of production as high as ours and supply chain fragility such as we have – we cannot allow complacency or political opportunism to undermine the national interest.

Today the Government has announced a delay in the implementation of full cost recovery for the Department of Agriculture. This is a cost saving worth tens of millions to industry, though the delay is only for 12 months after which we will still move to full cost recovery. While it is only a temporary stay in these charges, and not a reprieve, it is an announcement that in this uncertain time can be somewhat welcomed. We continue to turn our mind to longer term solutions to the crippling costs coming at the industry now, and while today’s announcement does not achieve this, it is a step in a better direction.

Australian farmers do not have the comfort of billions in subsidies, as many of our global counterparts do. In this country, we pay for our own prosperity. And it is in times like these Governments of all ilk need be reminded of a simple fact – Australians eat the safest and best food in the world because it’s produced by us and we pay for this standard by having a diversity of markets into which to supply the highest quality beef in the world.

Without high value export markets, the Australian consumer is going to be paying a lot more for a steak and without diesel it’s not going to get onto their plate at all. When cattle producers call on the Government for assistance, or to hold the line on a trade deal, there are good reasons for it.

Royalties may fund much of the Government, but you can’t eat critical minerals, wind or sun. This is a message that after the past few weeks, I think most people have once again been reminded.