China-Australia relations: exploding Australian wheat exports step up to meet high demand despite tensions
- China’s purchases of wheat from Australia over the first two months of the year were 479.3 per cent more than the amount acquired over the same period last year
- China’s strong demand for wheat is a result of increased feed requirements to accommodate the rapid recovery of its domestic pig production, its Ministry of Commerce said
China’s imports of Australian wheat have exploded despite their ongoing political tensions, with Australia’s bumper wheat harvest continuing to plug shortages of the grain from other key markets.
Purchases of wheat by China from Australia over the first two months of the year were 479.3 per cent more than the amount acquired over the same period last year, latest data from China’s customs showed, even though its overall imports from Australia have fallen slightly.
But the demand has come with exports from key wheat markets, such as Russia and the Black Sea, falling short due to dry weather and Russia curbing its exports amid a fight against domestic food inflation. Wheat is also in high demand after prices of other feed raw materials, such as corn and soybeans, soared.
“The food production enterprises and farmers also tend to stockpile and are reluctant to sell, which also drove the increase in food prices,” Ministry of Commerce spokesman Gao Feng said on Thursday.