South Australian rock lobster exports to China resumed on Friday (Jan 3) for the first time since 2020, marking the complete restoration of trade relations that were disrupted by restrictions imposed four years ago.

The shipment by Ferguson Australia, scheduled to arrive in Shanghai Friday morning, comes just ahead of the Lunar New Year celebrations, positioning the premium seafood product to return to Chinese markets during a peak consumption period.

The trade resumption follows successful lifting of restrictions on other Australian products, including barley in 2023 and wine last year, reflecting warming bilateral relations between Beijing and Canberra under the Albanese government.

"We are extremely happy to be back in the China market," said Andrew Ferguson, managing director of Ferguson Australia. "Our customers have been very welcoming to have us back so it seems a win-win for both sides."

Prior to the 2020 restrictions, South Australian southern rock lobster exports to China were valued at more than AUD 70 million ($43m) annually.

The South Australian government has invested AUD 475,000 in a Seafood Export Growth Program to support the industry's reentry into the Chinese market, including facilitating attendance at trade events and arranging visits by overseas importers.

Federal trade minister Don Farrell said the resumption of exports would provide "a much needed boost for the Aussie seafood industry and those that rely on it."

The shipments are being transported via direct air freight from Adelaide to China, utilizing recently established China Southern Airlines routes.

Industry executives previously told Undercurrent News they will maintain a more diversified export strategy following lessons learned during the trade disruption. Before the 2020 ban, China accounted for over 95% of Australia's total rock lobster exports, valued at AUD 730m.

"We had all our eggs in one basket before. We won't do that again," Ferguson told Undercurrent at the China Fisheries and Seafood Expo in Qingdao in October. "While we'll sell to this marketplace, we won't be letting go of what we've developed."

During the ban, Australian exporters pivoted to alternative markets, including Vietnam, Hong Kong, and Europe, though total live exports fell 46% to AUD 411m in 2023 compared to 2019 levels. Producers also increased frozen rock lobster exports, which rose from AUD 20.8m to AUD 72.3m over the same period.  

Demand for Australian rock lobster traditionally peaks during the Lunar New Year period, which falls on Jan. 29 this year. Australian fishing operations and exports typically ramp up in the weeks leading up to the festival to capitalize on higher prices and strong demand from Chinese buyers (see monthly exports below).