Strategic Insights Update

JBS’s Dinmore abattoir near Ipswich has hired more than 300 new workers (with 80% of new recruits Queensland residents), delivering capacity to process about one in ten of Australia's cows. Headquartered in Brazil, JBS is the world’s largest meat processing company. The increase in processing capacity comes as Queensland meat exports reached $7.4bn for 2023, with Meat and Livestock Australia (MLA) predicting slaughter rates to rise to the highest levels since 2019.

The Federal Agriculture minister has ruled out a specific emissions reduction target for the nation's agriculture sector, with no plans around herd reduction. However, the Federal Government has suggested the agriculture sector should reduce its emissions and contribute to an economy-wide target. Queensland’s Low Emissions Agriculture 2022-2032 outlines a framework to achiever lower emissions through reduction in production-based emissions increased carbon farming.

A trade deal with Australia and the United Arab Emirates is currently under negotiation, with Federal Trade Minister Don Farrell confident of a new Free Trade Agreement with the UAE. The UAE has displayed interest in Australia’s mineral resources and investment in Australia’s clean energy technology. The UAE is offering lucrative opportunities for Australian exporters of goods and services, especially agricultural and industrial products, which Queensland is well positioned to capitalize on. 

Australia and the Philippines will deepen maritime co-operation, including security for civilian shipping and surveillance, as President Ferdinand Marcos Jr warns his country is on the front line of Chinese efforts that threaten regional peace. Mr Marcos warned instability in the South China Sea was a threat to world peace and supply chains, and says it is vital that global trade arteries remained open. ASEAN has emerged as a key regional bloc in the geopolitical contest between China and the West.

Seat capacity between Brisbane and North America will exceed 140% of pre-COVID levels, offering Queensland exporters increased freight access to the United States, Queensland’s fifth largest trading partner. This uplift is a result of the recent announcements of new seasonal services from Los Angeles (operated by Delta Air Lines) and Dallas-Fort Worth (American Airlines), together with existing Qantas (Los Angeles), United Airlines (San Francisco) and Air Canada (Vancouver) services. 

President Biden has issued an executive order to reinforce the cybersecurity of America's ports, with a focus on critical port infrastructure. With Queensland experiencing the impact of the DP World cyber-attacks late last year, it is important for Queensland to continue to protect its own supply chain networks and where possible, partner with allied countries to ensure cyber security across the entire network. 

As Japan's economy unexpectedly slips into recession, the nation remains a hub for technology and renewables. Japanese cardboard maker Renego will pioneer production of Sustainable Aviation Fuel from construction waste by 2027. Further, as Japan pushes to revive its semiconductor industry, Taiwan Semiconductor Manufacturing Co unveils plans to invest US$7.4b to construct a second chip plant in Japan, demonstrating a willingness to partner in the sector. Queensland's relationships with Japan and Taiwan could assist in the further development of our own semi-conductor industry.