China-Australia relations: wheat purchases increase ahead of ‘bumper harvest’ despite trade stand-off
- China has emerged as a leading buyer of Australia’s upcoming wheat crop, taking close to two million tonnes out of the five million or so that farmers have sold
- China has imposed anti-dumping duties on Australian wine and barley and slashed purchases of Australian coal and beef during the long-running dispute
China is snapping up cargoes of Australian wheat despite a bitter trade stand-off between the two countries, as crop downgrades elsewhere lead to a global shortfall in output.
The buying spree comes as Australia, a key global food supplier, is expecting a second consecutive bumper harvest, while Northern Hemisphere producers have been hit by adverse weather and drought.
There is posturing over the trade dispute, but food supplies are key
“It is all about availability of good quality wheat supplies at the right price when it comes to food security for China, or any other country,” said Phin Ziebell, an agribusiness economist at National Australia Bank in Melbourne.
“Of course, there is posturing over the trade dispute, but food supplies are key.”
“Chinese buyers have cancelled some cargoes of French wheat on quality issues, and they are turning to Australia in a big way,” said one Singapore-based trader at an international food-supply company.