AN improvement in trade relations between Australia and China has paved the way for a $100 million deal between Balaklava hay supplier Balco and Chinese partner Bright Farming.
An easing of trade restrictions on hay imports into China has allowed the partner companies to sign a deal to export 200,000 tonnes of oaten hay.
Balco has been a long-term supplier of feed for the Chinese dairy industry.
The deal was signed at the China International Import Expo in Shanghai last week and comes weeks after Balco chief executive officer Rob Lawson took part in a SA government-led trade delegation to the Asian superpower.
"Bright is one of our key customers who are always looking for good quality and safely supplied feed," he said.
"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."
Prior to the imposition of trade impediments in 2021-22 f, SA hay exports to China were worth about $33 million.
SA Trade and Investment Minister Nick Champion said SA had enjoyed a fruitful relationship with Chinese businesses and he was pleased to see results flowing from the recent trade delegation.
"Our exporters have had it tough in recent years and this $100 million agreement proves how valuable face to face conversations are in building business connections," he said.
"This deal comes at a time when China has re-opened the door to Australia with the lifting of tariffs on hay exports. I look forward to seeing further improved relations between our two regions."
