China’s surging demand for wheat has been caused by its recovering domestic pig farmers and their need for more feed, the Ministry of Commerce said.
Wheat is used to make basic foodstuffs in China such as noodles, dumplings, buns and pastries.
Australian grain farmers have been able to cash in largely because Russia – a major wheat producing nation – has curbed exports in a bid to stop domestic food price inflation.
Wheat is also in high demand after prices of other feed raw materials, such as corn and soybeans, soared.
Australian farmers harvested their biggest wheat crop last year and sales to China and other countries including Vietnam and Indonesia are booming.
Wheat sales to China remained strong, although they have declined after the record high sale in December worth $248 million, which was Australia’s largest-ever monthly wheat export to any single country.
The latest Rabobank Rural Confidence Survey this month said that despite the COVID-19 pandemic, last year marked a major recovery for Australian farmers, after years of drought.