Export of Australian hay to China set to resume

The export of Australian hay to China is set to resume as tensions between the two nations continue to thaw.

Jason Gregory

less than 2 min read

September 28, 2023 - 5:31PM

The Weekly Times

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The export of Australian hay to China is set to resume and is another show of thawing relations between Canberra and Beijing.

The announcement follows the recent resumption of trade of barley, cotton and timber.

In 2022, Australia’s exports of hay and chaff to China were valued at $78 million.

Australia had 28 hay exporting companies with permits to export to China, but 25 of those licenses were not renewed in February 2021 in a wave of economic restrictions placed against Australian commodities, wiping about $100 million from the industry.

The three remaining companies continued to operate as they have active registrations until December this year.

Twenty of the deregistered companies were re-registered on Thursday and two operating licenses were renewed.

Government sources said that while the clearance has been given to export establishments to resume trade, there are still some steps to be finalised before shipments could begin.

China was Australia’s third biggest market in 2022, with 16 per cent of its production of hay and chaff exports going to China.

Baled hay. PICTURE: Zoe Phillips

In 2022-23, the total value of Australia’s hay and chaff exports to the world was $467 million.

Trade Minister Don Farrell said the announcement was “another positive step forward”, but there was more work to do.

“I will continue to persevere and press for all outstanding impediments to be removed as soon as possible,” he said.

The Australian government is working with the Chinese to have heavy tariffs lifted from Australian wine.

Agriculture Minister Murray Watt said the government was also working to remove the existing impediments and restrictions on beef and lobster.

The hay outcome is the result of ongoing talks between the Australian government, Australia’s Department of Agriculture, Fisheries and Forestry and the General Administration of Customs China (GACC).