Australian hay is expected to be the next target of the China-Australia trade war. Photo: ripped from hayaustralia’s official website
After the China-Australia trade war started, Australian goods such as coal, lobster, wine, barley and timber were banned from importing into China from the beginning in an attempt to hit the Australian economy. Now it is rumored that hay will be the next item to be subject to export restrictions.
Australia’s hay export license to China is about to expire, but it is rumored that China does not intend to renew the contract, hay is afraid to become the next item of export restrictions in the trade war. According to foreign media reports, nearly 28 hay manufacturers in Australia have had their export licenses expire and have not renewed their contracts with China. In response, Munro Patchett, general manager of Australia’s largest hay exporter Gilmac, said they had actually applied to the Chinese General Administration of Customs for a five-year export extension six months ago, but there has been no progress.
China is Australia’s top exporter of hay because of its well-developed cheese agriculture, and each year Australia sells about 350,000 tonnes of hay, with exports worth up to A$160 million. For China, the average annual consumption is about 1 million tons of hay, of which 300,000 tons comes from Australia and the rest is supplied by domestic producers. However, how China is going to find alternative importing countries is also a major problem.