Welcome toHome

【MKS sports】Australian agricultural firms flock to China amid warming relations

Source:MKS sports time:2024-12-23 15:06:53

China Australia Photo: CFP

Photo: VCG


As the relationship between China and Australia stabilizes,MKS sports the potential for bilateral economic and trade cooperation is expected to be further unlocked. Several Australian industry associations have told the Global Times that Australian agricultural players hope to enter or return to China, as they believe that the Chinese market is important for their businesses.

However, experts warned that the market share of Australian products in China has been partially taken up by products from other countries, and firms that are preparing to return to China will face the challenge of re-cultivating markets and customers.

The Global Times learned that in late August and early September this year, John Tyas, CEO of Avocados Australia, and other representatives of the Australian avocado industry visited China to conduct market research.

They went to Yunnan and Guangdong provinces and met with local organizations and major importers and retailers, as part of efforts to make progress with China in terms of quarantine and access for Australian avocados.

"We can see avocado being incorporated into the famous Peking Duck dish, which is very exciting and encouraging for our industry," Tyas told the Global Times.

Avocados Australia has been working on market access to China since 2013. The firm previously attended the China Fruit and Vegetable Fair in Beijing and they have been working with Chinese importers to understand the market opportunities for Australian avocados in China.

According to a report by South China Morning Post, compared to 2015, China's total avocado import and export volume increased by 310.47 percent to 65,600 tons in 2023, and the trade value increased to $106 million, a rise of 234.99 percent. The report said Japan was once the largest avocado consumer in Asia, but has now been surpassed by China.

Currently, China imports almost 70,000 tons of avocados per year and this is expected to increase in the coming years to as much as 100,000 tons. At A$6 per kg, that would make it a A$600 million market.

"If Australia can gain access to this market, in a few years we could capture 50 percent of this market, estimated to be worth A$300 million," Tyas said.

"When we achieve access to China, we will direct substantial resources toward growth of this market. We expect it will become our largest market within a very short period and we will need to invest in the market to grow it," he said.

Rachel Mackenzie, executive director of Berries Australia, told the Global Times that Berries Australia has recently appointed a general manager for Asia to foster relationships and develop networks across China.

"Our General Manager of Asia Jesse White has visited China every month since his appointment to engage with a range of Australian and Chinese organizations," Mackenzie told the Global Times.

In her view, China offers a valuable diversification strategy for Australia.

Berries Australia believes market access to China will be transformational for the Australian blueberry industry because it will enable premium berry products to be exported at a scale that cannot be achieved in any other country, she said.

Since last year, China-Australia political relations have improved. Through friendly consultations, the two countries have properly resolved trade friction in a number of areas, and Australia's exports of barley, coal, cotton, wine and other products have gradually recovered. In March this year, China announced the end of anti-dumping duties on Australian wine imports. And in May, China announced the cancellation of the import ban on five major Australian beef producers.

Chinese customs data showed that in May this year, Australia exported more than A$86 million worth of wine to China, and 350 winemakers, mainly from South Australia, re-entered the Chinese market. In September this year, Australian Treasurer Jim Chalmers visited China again after seven years and held a strategic economic dialogue with senior Chinese officials.

China offers similar importance for Australian avocados. Official information from Queensland, where Avocados Australia is located, shows that in the 2023 fiscal year ending in September last year, the state accounted for 65 percent of Australia's total avocado production.

Agricultural and animal husbandry practitioners can sense the opportunities in the Chinese market, Chen Hong, director of the Australian Studies Center of East China Normal University, told the Global Times.

For them, seeking to enter the Chinese market is not only driven by economic interests, but also a high degree of trust in China's economic prospects and business environment. Facts have proved that the desire of the Australian business community for access to the Chinese market far exceeds the expectations of some politicians in the country, he said.

In the past few years, the political relations between China and Australia deteriorated, and the confidence of Chinese industry and consumers in Australian products was also seriously dampened.

Since products such as wine, beef, and seafood are highly substitutable, many Chinese consumers turned to agricultural and animal husbandry products from other countries. For example, wines from Chile, France, South Africa and other places quickly filled the gap left by Australian products in the Chinese market. Once the market share is replaced by a third party, it is not easy to recover, Chen warned.

After the warming of China-Australia relations, Australian wine exports to China showed signs of recovery, but the industry still needs to re-cultivate the Chinese market and learn lessons from past experiences, he added.

In June this year, at the invitation of Australian Prime Minister Anthony Albanese, Chinese Premier Li Qiang paid an official visit to Australia. On June 17, Li co-chaired the 9th China-Australia Annual Leaders' Meeting with Albanese at Parliament House in Canberra.

Li pointed out that the China-Australia relationship is mutually beneficial in nature, and the two countries' development is each other's opportunities, not challenges. China is ready to work with Australia to uphold the comprehensive strategic partnership, give full play to such mechanisms as the China-Australia Strategic Economic Dialogue, scale up trade, actively expand cooperation in areas like new energy vehicles and renewable energy power generation, and step up exchanges and cooperation in culture, tourism and other fields and at the sub-national level. Li expressed the hope that Australia will foster a fair, just and non-discriminatory environment for Chinese businesses, and provide more convenience for cross-border travel between the two countries.

Chen said that the current China-Australia relations are gradually warming up, which also brings unlimited possibilities for the improvement of economic and trade relations between the two countries.

However, Australia still faces external pressure from the US and other countries. In addition, the anti-China forces within Australia should not be underestimated. These are uncertainties facing the economic and trade relations between the two countries, Chen said.

Berries Australia is confident the trade relationship between Australia and China is strong and resilient. As the relationship evolves and deepens, it continues to offer great opportunities for both parties and win-win outcomes for Chinese and Australian consumers, Mackenzie said.