Australian Rice Growers Apprehensive of U.S. Competitors Entering China Market

Published By : 12 Oct 2015 | Published By : QYRESEARCH

China has been importing several food items from various countries for many years now. With the rising disposable income levels, the middle class in China now has a higher purchasing power. This has led to the growing demand for healthy food items in China from the middle class consumers. Australia is one of the most prominent country that China imports food from. However, this scenario is changing.

Australia is not the only nation that has realized the potential this demand for healthy food in the China market. A large amount of milk and milk products are also imported in China from South Korea. A variety of organic food is also imported in China from Europe. Another major and emerging contender for Australia in terms of exports to China is the U.S. Recently, there was news that soon China will import food such as maple syrup from the U.S. Now, another food item, that is, rice has been added to the list of foods that China will import from the U.S.

China unlike Japan is not self-sufficient in terms of grain. China has emerged as a key rice importer and imports around 2 million tons or even more long grain rice. Previously, Vietnam addressed to most of the Chinese imports. However, with the trade polices becoming more flexible, Australia and the U.S. have been now able to sell their products in the China market. At present, Australian rice growers are apprehensive that their Californian competitors will be able to gain a head start on penetrating this lucrative market for grains in China.

According to Dwight Roberts, the president of the US Rice Producers Association in Houston, China has requested that there should be a signing event for the phytosanitary protocol in Beijing. If this deal comes through, then it will be the second time that Australian rice growers will lose to their U.S. competitors.

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