Australian lobster industry resumes trade after China ban

FREMANTLE: Even in the scorching Australian summer sun, long lines of shoppers meander around Fremantle Harbor – a calming sight for besieged local fishermen trying to replace lost business with China.

Australian lobster exports are worth half a billion dollars a year – and normally 94 percent of them go to China.

But that all changed a few weeks ago, when Beijing imposed a near-total ban on lobster imports, as part of a larger, politically charged “shadow trade war”.

“It affected us greatly,” third-generation fisherman Fedele Camarda told AFP. “Our income has been drastically reduced.”

Relations between Canberra and Beijing have been in free fall for most of this year, with China running up against a list of problems, including Australia’s call for an investigation into the origins of COVID-19 and the ban on Huawei’s participation in the country’s 5G network. .

The dispute has seen more than a dozen Australian sectors hit by import levies, with the barley and wine industries particularly hard hit. Exporters risk losing up to $ 2 billion to $ 4 billion in sales.

The Australian economy as a whole has weathered the storm so far. The economy returned to growth in the last quarter, emerging from a coronavirus-induced recession.

But individual businesses were forced to find new customers and markets overnight to avoid red ink, job layoffs or bankruptcy.

CLOSE TO THE HOUSE

Some barley growers planted other grains or redirected shipments to the Middle East, and winemakers focused on selling to Japan.

But the lobster industry is looking closer to home.

In an effort to help the ravaged sector, local authorities recently changed the law to allow commercial lobster fishermen to sell large quantities on the back of their boats in December and January.

So far, the Australian public has responded with enthusiasm, offering a much-needed lifeline for Camarda and her fellow vendors.

Before the Covid-19 pandemic, prices were above $ 80 per kilogram in Western Australia and typically averaged around $ 53 per kilogram.

On a heavy weekday before Christmas, sweat-soaked customers bought the world-famous Western Lobster right from the dock for US $ 34 per kilogram – a 36% discount.

“It’s just enough to break even,” Camarda said. “But we sell out almost every day. We take pre-orders however people want for Christmas.”

Making sure they were in place to handle orders and make the product available to the public had been “a crash course,” he admitted.

Demand in Australia is such that some supermarkets have had to limit the number of lobsters customers can buy.

Nick Van Niekerk, a resident of nearby Mosman Park, was one of those who braved the heat to stand in line for 30 minutes.

“I came to support the local fishermen and show them that we care about the community,” he said. “It’s important to be able to get lobsters straight from the boats and to know what you’re actually getting.

“Lobsters are generally very expensive so getting them at an affordable price I think is great for the local community.”

THE LONG TERM

But everyone agrees that sales behind the boat are a short-term solution.

Longer term, Australian fishermen are looking to get a higher price again in markets like Japan, the US and Europe, and not just rely on a single, politically fickle customer.

“China was prepared to pay more and the whole market was basically moved there,” said Keith Pearce, former president of the Association of Local Professional Fishermen.

“The market had to be diverse so that you don’t end up with the problem we have today,” he added.

Camarda is optimistic about the sector’s ability to pull, despite the lingering uncertainty.

His grandfather started dropping dogs in Fremantle in 1912, who had come from Italy four years earlier, and he hopes the tradition can continue.

“My family has been in the industry for generations, but that’s the kind of thing we have to endure from time to time,” he said.

His 21-year-old son, James, started fishing alongside him on the Neptune III.

“It would be nice if he had the opportunity to have a career if he wanted to go this route.”

“But we’re here for the long haul. We’ll find ways to survive.”