China's trade thaw with Australia has continued with a boost in wool sales to our largest market.
In a Christmas present for woolgrowers, China on Monday announced a five per cent rise in the 2024 import quotas for wool for Australia.
The rise in the wool quota is in line with the terms of the bilateral free trade agreement but still comes as a fillip for Aussie growers with prices expected to rise as a result.
It follows hot on the heels of Thomas Foods International in South Australia just last week agreeing to a $60 million a year deal with a major Chinese food distributor.
An agreement was signed committing to a target of exporting $30 million of chilled and frozen red meat exports by the end of 2024.
Trade experts say Monday's wool quota rise also signified of strengthening of trade cooperation between the two nations.
According to China's Ministry of Commerce and the General Administration of Customs, China's import quota for Australian wool will be 44,324 tonnes in 2024, up 5pc year-on-year.
At the end of November, the MOFCOM said it would review anti-dumping and countervailing duties levied on Australian wine, and would decide whether the punitive tariffs are necessary.
In October, the ministry said China and Australia reached consensus on resolving disputes on wine.
China's market share of Australian wool exports has risen from 4.2pc in 1990 to around 80-85pc today.
Almost all China's greasy wool imports come from Australia (75-80pc) - the next biggest source countries are New Zealand (7.5pc) and South Africa (7.2pc).
What is often overlooked, according to Australian Wool Innovation, is around 40pc of Australian greasy wool is consumed by domestic consumers in China.
The import quota for New Zealand's wool and wool tops in 2024 will remain unchanged from the 2023 quota.
The import quota for New Zealand wool in 2024 will be 36,936 tonnes and that of New Zealand wool tops will be set at 665 tonnes.
The increase for Australian wool is in line with the terms of the FTA, under which China had previously committed to increase by 5pc annually through 2024.
Chris McLennan
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
