Positive movements on wine tariffs, while meat and grains value relationship-building visit

There is certainly hope within the wine sector that may be the case, after China's Ministry of Commerce made a "package deal" offer to remove tariffs, following the completion of an SA trade mission last week.

The travelling party, led by Premier Peter Malinauskas, included representatives from major SA food players including Thomas Foods International, Treasury Wine Estates and Viterra.

They met a variety of Chinese government trade and commerce officials, food importers and business leaders in Beijing, Jinan and Shanghai.

Delegates have said discussions were meaningful and positive outcomes were likely.

Immediately following the delegation, the state-based China News and The Australian both reported China's Ministry of Commerce were willing to "meet halfway" to abolish wine tariffs, if there was less restrictions on its wind towers, railway wheels and stainless steel sinks in return.

Federal Agriculture Minister Murray Watt has since said the government considered them entirely separate matters, but would look to solve ongoing trade issues through continued dialogue.

While Mr Malinauskas said SA wouldn't get it's hopes up "too quickly" about the potential removal of wine tariffs and more discussions would take place at a federal level, he described the delegation as a "full-court press" to the Chinese government to make it clear what SA's aspirations were.

"I am very satisfied the trip, with a very significant delegation of businesses particularly in the wine industry, was able to move the needle in a positive direction and keep the momentum going on the back of the stabilisation of the Australia-China relationship to see these tariffs reduced," he said.

"This was a really serious trip for a really serious purpose that affects the lives of thousands of South Australians who depend on industries such as wine and seafood, but also grain as well."

Bec Hardy Wines joint managing director Richard Dolan has been on every state trade delegation for the past decade and said he couldn't remember such a senior group making the trip.

He said all discussions and conversations among the packed agenda were meaningful and he was confident there would be outcomes.

"I'm confident in the medium term that tariffs will likely be removed, but what we need right now is a period of quiet to allow diplomats on both sides to engage and calmly, methodically work through the detail towards resolution," he said.

"There's been this three-year period where we haven't been able to engage as we did because of COVID and there's been some difficulties in the trade relationship.

"But at a people-to-people and business-to-business level, the relationships are still incredibly strong and there's still a great desire from Chinese buyers and consumers for outstanding quality South Australian product, whether its lamb and beef, rock lobster, or wine from this fantastic clean, green and pristine environment we have."

Mr Dolan said there was a collegiate feel among the travelling party, with delegates advocating the interests of the state above just their own personal business interests.

"When a delegation of that calibre travels across, the Chinese government and industry recognise it and engages accordingly," he said.

"We met with some very senior people in commerce and government."

Meat and grains were also on the agenda during the China visit, with Viterra chief executive officer David Mattiske and TFI managing director Darren Thomas among the trade delegation.

Mr Thomas was confident there would be commercial opportunities arise for the red meat sector from the delegation, and it may be the first step in TFI getting its new Murray Bridge processing plant China-listed.

"We had numerous opportunities to showcase the newest, most China-compliant plant in the world, being our Murray Bridge plant," he said.

"The original plant that burnt down was China-listed. Now that Murray Bridge has its Tier 2 accreditation, we would be hoping China can review our plant for listing as soon as possible as we feel it will set the new benchmark for export processing for China."

Mr Thomas said China had always been willing purchasers of Australian beef and lamb, and TFI had established brands and partnerships in their market.

"With the bi-lateral relationship stabilising, I think it's very important we begin to repurpose old friendships and look to the future opportunities," he said.

"It was a good decision by the Premier to lead such a delegation and we felt very welcome."

Mr Mattiske said the trip was a "fantastic opportunity" for Viterra to show it was ready to resume exporting SA barley, and to develop "strong channels of engagement".

"There was excellent engagement from politicians from both countries, and we were able to discuss the importance of the Chinese market for Australian barley, and for wheat which we have continued exporting to China along with pulses," he said.

"We are hopeful we will be able to resume canola exports into China in the not-too-distant future."