[China-Australia Relations]Is the disastrous unemployment wave behind the Australian lobster sales? -Hong Kong Economic Times-China Channel-National Trends

▲ If the Sino-Australian trade disputes continue, the Australian lobster industry may see a wave of unemployment.Profile picture

After China-Australia relations fell to the bottom, a large number of Australian products were restricted from entering the Chinese market, including lobster. Australian media reported that no lobster has been exported to China since November last year. At present, the local fishing price of southern rock lobster is only 25 Australian dollars per kilogram, and some fishermen can no longer maintain their balance of payments. Industry insiders warn that one third of the thousands of jobs in the Australian lobster industry may be lost within a few months.

“The Australian” reported that the price for local fishermen to achieve a break-even price ranged from 25 to 39 Australian dollars per kilogram, depending on the size and location of the lobster. 25 Australian dollars is about one-third of the price before the Chinese ban took effect. At this price, most fishermen can no longer balance the diesel, crew, ship maintenance costs and the government’s fishing rights fees. If the market environment cannot support fishing in the sea, in addition to the fishermen having no income, businessmen investing in the industry will also suffer huge losses. According to the report, a Tasmanian investor is now in debt of A$5 million after paying nearly A$10 million for a lobster quota permit at the end of 2019.

In fact, in the Sino-Australian trade dispute, the Australian lobster industry is one of the industries that has been hit hardest and most vulnerable. According to reports, after Beijing imposed a tariff of 80% in May, Australian barley merchants found other markets in the Middle East, even if the price they paid was not high; the blacklisted Australian coal was resold to India and India at a lower price. Other countries. But the lobster industry is different. Southern rock lobster produced in Tasmania, South Australia, Victoria and New Zealand is a high-end product in the global seafood market, but customers in other regions, such as Japan and Taiwan, are willing to pay less than half the price in China. Australian fishermen still have to face huge losses.

Michael Blake, president of the Southern Lobster Exporters Association, said that their industry has a certain degree of resilience, but the current situation is definitely difficult. For those businessmen who invested in the industry during the boom, including former South Australian Senator Cory Bernardi, and even some Chinese businessmen, unless the Beijing and Morrison governments can resolve their long-term differences, their capital loss will be catastrophic.

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Editor in charge: Chen Jianxi

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