By Colin Packham
SYDNEY, Feb 24 (Reuters) - Australia appointed its first agricultural advisor to its competition regulator on Wednesday as the country seeks to protect farmers who have long complained that profits are squeezed by the country's dominant supermarkets and processors.
Supporting farmers is seen as critical to Australia's goal of becoming the "delicatessen of Asia" by capitalising on strong Asian demand for high-end produce that has seen the value of the country's agricultural exports rise to about A$45 billion ($32 billion) last year.
"The government is committed to fostering a vibrant and competitive agriculture industry to ensure that Australian agribusinesses are well placed to seize opportunities both at home and in emerging global markets," said Australian Treasurer Scott Morrison.
Rod Sims, chairman of the Australian Competition and Consumer Commission (ACCC) said on Tuesday that oversight of the country's agriculture sector was "a new priority" for the regulator in 2016.
Mick Keogh, a cattle farmer and former industry body executive, was appointed to a five-year term as an ACCC commissioner, and will likely take on Australia's sugar industry - the world's third largest raw sugar exporter - as an early priority.
Relations between growers and sugar millers have soured in recent months after several large producers announced plans to stop selling their sugar through an industry-owned marketing body, raising fears among farmers of lower prices.
Wilmar International Ltd WLIL.SI , MSF Sugar, owned by Thai sugar giant Mitr Phol MIDSMP.UL , and the Australian unit of Chinese agribusiness COFCO Corp CNCOF.UL had planned to switch to in-house marketing arms from 2017.
Queensland state in December passed a bill that will allow sugar farmers to choose who sells their produce, undermining the plans of the foreign millers. The three offshore processors have have called on regulators to overturn the law.
Keogh will also be tasked with ensuring the country's dominant supermarkets do not abuse their power.
Coles, owned by Wesfarmers Ltd WES.AX , Australia's biggest retail group, was fined A$10 million in 2014 after it was found to have used undue pressure to extract A$16 million in rebate payments from some 200 farmers in relation to apparent supply chain improvements.
"I'm hoping that ... we show to the Australian people that we are doing everything in our power to open the markets, to turn around the prices, as well as to make sure that we get the research and development right," Deputy Prime Minister Barnaby Joyce told reporters.
($1 = 1.3887 Australian dollars) (Editing by Jane Wardell and Richard Pullin)