South Australian exports to China rise 15 per cent in first five months of the year, despite political war of words
Disputes over COVID-19 and a threatened boycott could have damaged Australian trade with China, but the opposite has happened. South Australian exports are booming.
SA News
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Australia’s trade with China is booming, with exports rising $2.1 billion in the first five months of 2020, despite Beijing’s threats of a boycott.
SA’s exports to China rose 15 per cent, or $165 million, from January to May, compared to the same time last year.
Beef, sheep, fruit and nut exports to China have gone gangbusters, Department of Foreign Affairs and Trade figures show.
Wine sales are also starting to rebound after being hit by COVID-19 lockdowns.
Farmers say Chinese consumers are still hungry for premium SA and Australian goods, despite the political war of words between Beijing and Canberra.
Chinese ambassador Cheng Jingye warned in April that Australia’s push for a COVID-19 inquiry could cause Chinese consumers to boycott their products.
“Maybe the ordinary people will say ‘Why should we drink Australian wine, eat Australian beef?” he said.
However, Livestock SA chief executive Andrew Curtis said the Chinese public still wanted our products.
“There might be a bit of discussion at higher levels of government, but the consumers are still interested in what we have and they recognise that we are a reliable and quality supplier,” he said.
Fresh, frozen and chilled beef exports have risen 26.9 per cent, or by $216 million, to be worth more than $1 billion nationally for the five-month period. SA’s beef exports doubled to $47 million. That was despite China suspending imports from four Australian abattoirs in May.
Australia has so far exported four times as much fish to China this year, compared to January to May 2019, sheep meat exports were up 10 per cent, and cheese and curd exports were up 14.5 per cent. While Australia’s wine exports to China were down almost 13 per cent, and SA’s exports down almost 9 per cent, DFAT figures show sales improved in April and May.
Overall, Australian exports to China for the period increased from $57.2 billion in 2019 to $59.4 billion this year.
Federal Trade Minister Simon Birmingham has previously expressed frustration at China slapping an 80 per cent import tax on Australian barley in May.
It coincided with Australia’s calls for an inquiry into the COVID-19 outbreak, but Beijing denies the tariff hike was retaliation.
Senator Birmingham said the trade boost this year showed SA produce “continues to have a strong reputation”. “This is a credit to our hardworking farmers that even in these challenging times, their high-quality, safe and reliable produce remains in demand around the world,” he said.
Freight flights to the major hubs of Singapore and Hong Kong helped keep product heading overseas.
Business SA chief executive Martin Haese said the export growth showed the underlying strength of the South Australian economy, and that China remained a significant trading partner.
Lochert Bros managing director Robert Lochert said many Riverland growers exported to China, while markets in Singapore and Malaysia also performed very well.