Limestone Coast fishers have welcomed the return of live lobster shipments to China for the first time in more than four years, just days after trade restrictions on the premium seafood product were lifted.
The first shipment from the Limestone Coast arrived in China on Friday, and with Lunar New Year taking place later this month, this will see South Australian southern rock lobster back on Chinese menus and in Chinese markets ahead of the festivities, following the Ferguson Australia shipment landing in Shanghai.
The State Government has worked closely with its Federal Government colleagues to advocate for the removal of Chinese trade impediments, with tariffs lifting on barley in 2023 and wine last year.
In June, the State Government launched the $475,000 Seafood Export Growth Program to assist the South Australian rock lobster industry in its reengagement with the Chinese market.
The program has already supported producers to attend a major trade event in China where they met with key buyers ahead of the scheduled resumption.
It will also support producers to attend future trade events, bring overseas seafood importers to South Australia for familiarisation visits, and allow government trade advisers to assist with the building of export capability.
At its peak, more than $70m worth of South Australian southern rock lobster was exported to China annually.
The lifting of trade restrictions on live lobster marks the resolution of all outstanding trade impediments introduced in 2020, following work undertaken by the Federal Government led by Trade Minister Don Farrell and Foreign Affairs Minister Penny Wong to normalise the country’s relationship with China.
Ferguson Australia managing director Andrew Ferguson was delighted at the resumption of trade.
“We are extremely happy to be back in the China market. Our customers too have been very welcoming to have us back so it seems a win-win for both sides,” he said.
“We have been exporting to China for 25 years, and the South Australian product and brand is well known and well liked in the market.
“Fresh out of the sea in the South East, we have a shipment of lobster landing in China this morning (Friday).”
The resumption of trade has reflected a bump in the lobster price, with South East fishers receiving up to $100 per kilogram.
The premium price is currently on offer for larger lobsters weighing more than 2kg. Otherwise, the average price is $85 and this is the highest return since China suspended trade.
Veteran Port MacDonnell fisherman Gordon Lewis is pleased with the lift in prices as well as the high catch rates.
He has fished since leaving school and is now a part of a multi-generational family enterprise.
Mr Lewis has not been at sea for around a decade but has three sons who man boats.
With the fishery managed by quota for almost 30 years, licence holders have to be aware of market trends.
“We have not fished much at all this season,” Mr Lewis said.
“We were waiting and hoping and it has paid off for us this year.
“The price immediately jumped $20 per kilogram as soon as China reopened.”
Mr Lewis anticipates the strong demand for lobsters will remain as Chinese New Year approaches.
The retail market has followed the upward trend of the wholesale market with one Adelaide fishmonger charging $128 per kilogram for cooked lobsters.
Meanwhile, Minister for Trade and Investment Joe Szakacs said following the resumption of wine exports to China in March of last year, it was “fantastic to see another premium South Australian product making its way back into China”.
“Our government has worked hand-in-hand with the South Australian seafood industry and the Federal Government to ensure a positive outcome for the state,” he said.
“It’s particularly important that SA lobsters are arriving in China via direct air freight from Adelaide, thanks to the Malinauskas Government securing China Southern Airlines direct flights.
“While it’s great to see local lobster back on the menu in China, there is still work to do, and we’ll continue to support the industry in its efforts to reengage with buyers.”
Minister for Primary Industries and Regional Development Clare Scriven said it was a great step for the state’s lobster fishing industry.
“The re-establishment of export to China is a huge boost, after the difficulties of recent years, and will make a significant difference to our coastal communities,” she said.
Federal Minister for Trade and Tourism Don Farrell said he was thrilled that quality Australian rock lobster can once again feature on the menu in China.
“The resumption of these exports is a much-needed boost for the Aussie seafood industry and those that rely on it,” he said.