Lobster fishermen hoping for China trading ban relief

There have been no direct live lobster exports from Australia to China since 2020, when a $2 million shipment was stuck on the Shanghai tarmac after China's customs agency claimed the lobsters were contaminated.

While Chinese authorities recently lifted onerous tariffs on the Australian wine industry, and last year removed similar on the barley market, rock lobster fishers and some Australian red meat processing plants remain suspended from trading with China.

South Australian fisherman Kyri Toumazos says the mental stress of the decision made about four years ago has left fishing communities hanging by a thread.

"When China imposed this snap ban on our catch the price of lobster plummeted, leaving operators struggling and trading on goodwill to maintain equipment to ensure employment in local coastal communities, and it's been incredibly tough," Mr Toumazos said.

"We are happy to see movement for other sectors but our industry is still treading water and waiting."

The South Australian rock lobster industry operates out of two zones, the southern zone that starts at the Murray mouth and ends at the Victorian border; and the northern zone, which also starts at the Murray mouth, going through to the Western Australian border.

"Our fishers produce about 1600 tonnes of lobster annually," Mr Toumazos said.

"The last four years have really been catastrophic on the industry. It's caused a lot of stress and the industry has really just been in survival mode. Most operators are just maintaining employment in their business and the upkeep of equipment."

Mr Toumazos said the Chinese ban on Australian rock lobster had caused a lot of economic hardship for fishers, with prices falling by about 50 per cent in the past four years.

"About 10,000t of lobster is caught in Australia annually, with most of that out of Western Australia at about 7000t." he said.

"The reality is that volume can't possibly be consumed on the local market. We've always held the local market in very high regard but it's not able to consume our entire supply."

Demand within Australia was also seasonal - peaking at Christmas and Easter.

Mr Toumazos hopes the recent lifting of tariffs by China on Australian wine is a sign of things to come for his industry.

The rock lobster industry in South Australia alone employs about a 1000 full-time staff so there are huge flow-on benefits from the sector to the broader economy.

"Having China back on board will ensure during our high catch rate times, our fishers out on the water are economically viable, but we need China to make an announcement soon," Mr Toumazos said.

"Our industry needs and wants a strong relationship with China - we want our government to continue the strong collaborative relationship with China."

One of Australia's leading voices on international business relations, Leigh Howard, chief executive of Asialink Business at the University of Melbourne, said the trade ban had forced the industry to seek opportunities in secondary markets including Hong Kong and Taiwan, but none have been as lucrative as China.

Vietnam, Thailand and Japan were also solid markets for Australian rock lobsters, but still not offsetting China's absence from the market.

"More than 90 per cent of Australia's lobster exports were going to China before the trade bans and unlike many other affected export categories, live and chilled lobsters are perishable and so the imposition of overnight trade restrictions bans were devastating," Mr Howard said.

"Given the lifting of trade bans on barley and more recently wine, there is a growing sense of optimism but still caution on the timing.

"Australian lobsters are still viewed as premium by Chinese customers, but there are also substitute options from other countries which have filled the void. If the China market re-opens, the big question is will Australian lobsters still have an edge due to their high quality?"

Mr Howard said other countries, such as New Zealand, had moved in to fill the gap left by the absence of Australian rock lobsters exports, but that our product's quality made it likely we'd regain a solid foothold in the Chinese market.

"Australian rock lobsters are a really beautiful, high-quality product," he said.

"When the China market does open up again, I'd anticipate a resurgence in buying interest based on consumer demand return as well."