Coronavirus: Hungry Chinese defy Beijing’s bluster by importing 3000 tonnes of fresh Aussie produce
China is importing plane loads of premium Australian seafood and beef despite its government’s aggressive threat of boycotts.
China is importing plane loads of premium Australian seafood and beef through the Morrison government’s freight assistance program, which has locked in more than $1bn worth of produce exports to 28 international markets.
Despite Beijing’s high-profile suspension of four meatworks and slapping tariffs on barley, The Australian can reveal 3000 tonnes of Australian products — including rock lobster, salmon, milk and beef — are bound for China through Shanghai and Xiamen.
The government’s $110m freight assistance mechanism, announced last month, has secured 1048 export flights carrying 23,000 tonnes worth of Australian produce, with 10,000 tonnes already hitting overseas markets.
The export program — run by former Toll Holdings and Linfox chief executive Michael Byrne — has sent freight flights to countries including China, Japan, Singapore, the UAE, Malaysia, Hong Kong, Thailand, New Zealand and South Korea.
Mr Byrne said the success of the freight flights presented an “opportunity” for Australia to expand its trading capacity. “There’s a simple reason why we’ve moved so much produce — it is of such high quality and there’s so much demand (for it). Customers overseas still want our beef, our lamb, our lobsters and our crayfish,” Mr Byrne told The Australian.
“Agriculture and trade could help push the recovery. For me, it’s about getting more birds in the sky, more planes flying our produce out to those markets.”
Mr Byrne, a self-described “hardcore industry man” working with 60 Austrade, Agriculture and Home Affairs officials, said the national cabinet co-ordination had been key to the program’s success. With 90 per cent of exports usually ferried on passenger aircraft, the COVID-19 package has provided a lifeline with single freight flights packing on average $1m of produce, including beef, lamb, pork, fresh milk, salmon, tuna, lobster, nuts, strawberries, rockmelons and capsicums.
Trade Minister Simon Birmingham said: “With very few international passenger planes flying at present, our agricultural and seafood producers continue to face major hurdles getting their produce into key export markets.
“Our exporters have worked hard to build relationships with overseas customers and lock in long-term contracts. Making sure they can honour contracts whilst also getting more exports out the door will be crucial to reducing job losses through this crisis.”
Agreements have recently been signed enabling the export of tuna to Japan and Victorian chilled beef to Germany, which will be distributed across Europe.
Seizing on the winter strawberry season, flights have also been locked in to send West Australian and Queensland strawberries to Thailand and New Zealand.
Stockyard Beef, which operates a 20,000 cattle feedlot near Toowoomba in Queensland, is using the international freight mechanism to help export luxury wagyu and Angus beef to 17 countries.
David Clark, Stockyard Beef general manager of marketing, said the collapse in fine dining overseas had been quickly replaced by premium retailers across Europe, China, the Middle East and Southeast Asia demanding high-quality Australian beef.
“Retail prices have held up and we haven’t been discounting. We haven’t had to let go of any of our staff,” he told The Australian.
“Our philosophy has always been to get the product to market, and the freight mechanism has really helped with that. It has given us the confidence to keep going.”
The freight assistance mechanism, which mainly focuses on helping agricultural and fisheries exporters get their fresh produce into markets within days, began last month as a temporary measure to address the collapse of the commercial airfreight sector triggered by the global COVID-19 crisis.