China lifts restrictions on hay exports, unlocking South Australian industry worth tens of millions of dollars

China has lifted restrictions on another local industry, unlocking tens of millions of dollars in trade.

China has lifted restrictions on Australian hay exports after two years, unfreezing a local industry worth tens of millions of dollars.

The state’s hay sector – known for providing clean and safe food for beef and dairy cattle – has been one of several forced to deal with trade impediments in recent years.

Before the restrictions were imposed by Beijing in the 2021-22 financial year, SA hay exports to China were worth about $33m.

Nationally, more than 15 per cent of Australia’s hay and chaff exports were sent to China.

Federal Trade Minister Don Farrell said the resumption was “another positive step forward” in relations, and comes after the resumption of trade on a range of products including cotton and barley.

Federal Trade Minister Don Farrell said the resumption was “another positive step forward” in relations.

Primary Industries and Regional Development Minister Clare Scriven. Picture: NCA NewsWire/Emma Brasier

However, bans on the export of Australian wine and some seafood products are still in place.

Primary Industries and Regional Development Minister Clare Scriven said the easing of hay restrictions was “another positive step forward for our South Australian farmers”.

“On the back of a record year for crop yields, South Australia’s grain sector now has the opportunity to continue to thrive,” she said.

Trade and Investment Minister Nick Champion said the continued stabilisation was improving South Australia’s trade opportunities in a range of areas.

“There remains work to do, particularly for South Australian producers of beef, wine and Southern Rock Lobster,” he said.

“Credit must be given to both the Australian and Chinese governments for the way the relationship has stabilised with trade playing a critical role in engagement.”

Rob Lawson, chief executive of hay exporter Balco Australia, said the announcement was fantastic news for South Australia’s oaten hay industry.

“We have enjoyed strong relationships with customers in China over many years, and we are looking forward to re-establishing and growing those relationships to supply our premium quality product to the benefit of China’s agricultural industry,” he said.

Originally published as China lifts restrictions on hay exports, unlocking South Australian industry worth tens of millions of dollars