A $100 million deal to supply oaten hay to China has been signed by South Australian agricultural company Balco Australia and Chinese partner Bright Farming at the China International Import Expo in Shanghai.
The recent lifting of trade impediments on hay imports comes at a crucial time for Balco Australia who will, over the next decade, export approximately 200,000 tonnes of Australian oaten hay to Bright Farming, in a deal worth an estimated $100 million.
Based in Balaklava in regional South Australia, Balco Australia will export its oaten hay product to China to be used as a prime source of digestible fibre within the country’s agricultural sector.
The deal comes just weeks after the Premier of South Australia’s CEO Delegation visit to China and following China’s lifting of the ban on hay exports.
Balco Australia’s CEO Rob Lawson was part of the Premier’s CEO delegation in September to participate in key industry meetings with Chinese counterparts, including Bright Food Group.
“Balco has been privileged to have a long-term relationship with Bright Farming over many years,” said Rob Lawson, CEO Balco Australia.
“Bright is one of our key customers who are always looking for good quality and safely supplied feed. We are honoured to sign this long-term agreement today and look forward to the future, seeing the continued success of the Bright Group as they continue to grow.”
Australia is highly regarded for the national farming practices that result in a ‘green and clean’ reputation. Australia boasts low nitrate soils, low potassium levels and farmers do not use GMOs.
Balco Australia is the only hay export company in Australia that undertakes rigorous quality and nutritional testing and is the only HACCP
accredited hay export company in the country.
The agreement was signed at the China International Import Expo (CIIE) in Shanghai.
Held annually, the event strengthens economic cooperation and trade across the world. The South Australian Government has supported 21 companies to attend CIIE at the Australian Pavilion in 2023.
Hazard Analysis Critical Control Points (HACCP)