Australia Halts Bulk Hay Exports to China... China Faces Backlash

China imports 30% of its 1 million tons hay usage from Australia, shipments halted since March
Hay price rise → livestock product prices (cattle, pigs) rise → food table prices increase

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Australia has blocked the export route of its domestically produced hay to China. As China imposed tariffs on Australian wine, beef, barley, and other agricultural and livestock products in economic retaliation against Australia, Australia appears to have responded in kind.

With the import of hay used as feed for livestock such as cattle being blocked, there is now an emergency in managing livestock product prices in China.

China's state-run Global Times reported on the 26th that the renewal of export licenses for 28 Australian companies exporting hay to China has been delayed, effectively blocking imports of Australian hay.

[Image source=Yonhap News]

The media outlet stated that livestock farmers could become victims of the conflict between China and Australia and are seeking various measures such as diversifying import sources.

China's annual hay consumption is 1 million tons, of which it is known to import 300,000 tons from Australia.

Quoting livestock farmers, the outlet reported that out of the annual consumption of 1 million tons, 700,000 tons are supplied domestically, and the remaining 300,000 tons are entirely imported from Australia. Among the 31 Australian companies holding export licenses, the export license periods for 28 companies have expired.

Given that Australia is the sole source of hay imports, the Global Times expressed concern that Chinese livestock farmers could be seriously affected. The rise in prices of hay and other feed could lead to increases in beef and pork prices, impacting food prices on Chinese dining tables.

Price increases are expected to be inevitable until the oat harvest season in July and August.

A Chinese agricultural official said, "Although the oat cultivation area in Gansu Province, Inner Mongolia Autonomous Region, and Hebei Province has significantly increased this year, the oat harvest season is in July and August," adding, "Price increases due to hay shortages are unavoidable for the time being." The official also mentioned, "As an urgent measure, we have decided to import hay from Spain and are currently proceeding with the necessary procedures."

However, if the conflict between China and Australia continues, the damage to Chinese livestock farmers is expected to be considerable.

An official from the Chinese livestock industry stated, "The issues related to Australia must be completely resolved by next year," emphasizing, "In the long term, Australian hay must not be absent from the market."

The conflict between China and Australia began in April last year. When the Australian government demanded an international investigation into the origin of COVID-19, China reacted strongly and imposed tariffs on Australian wine, beef, barley, coal, and other products. China's economic retaliation caused significant damage to Australia's major export industries. Australia's restriction on hay exports is expected to pose a considerable burden on the Chinese government, which is making every effort to revitalize the rural economy.

This content was produced with the assistance of AI translation services.