Australia's rock lobster fishing industry is facing a struggle for survival after it lost its key export market of China.
China accounted for 95 per cent of rock lobster exports that were flown live from Australia. But last November Beijing imposed a live export ban as relations with Canberra plummeted.
The industry, along with Australian beef, barley, coal and wine producers, became caught in rising tensions with China after clashes over the coronavirus, Hong Kong and foreign interference.
READ MORE: Farmers warn China trade dispute will cost them $37 billion
Before the trade sanction hit, Chinese buyers were prepared to pay about $100 per kilo for high-grade Australian southern rock lobster.
But today rock fishers are largely dependent on the domestic market, where prices generally fetch about $30 per kilo.
Victorian Rock Lobster Association president Markus Nolle told nine.com.au many fishers will face a struggle to keep their businesses in the coming autumn and winter months.
"It is an industry that has been underpinned by Chinese market for the past 20 years," he said.
"The next six months are crucial - they are not traditionally a productive time."
Mr Nolle fears that without the high prices rock lobsters fetched in China, some fishers will walk away from the industry.
He feared some newer entrants with high levels of debt were already quitting, while more established players in the industry were toughing it out.
The industry saw a small increase in demand over Christmas as Australians treated themselves to cut-price lobsters, and again through the Lunar New Year.
And while the rock lobster industry has attempted to transition to other export markets, it faces a mammoth task in replacing the Chinese market worth $750 million per year.
Mr Nolle also feared fishers - faced with a big loss in income - will cut corners in their operations.
"Boats which have two crew will be cut to one and maintenance of boats and equipment will be put off. This will have safety concerns."
Another major financial burden for fishers is the license fees - which can be up to to 40 per cent of the cost of production - and have to be paid upfront.
While states including South Australia, Tasmania and Western Australia have deferred or repaid licence fees, the Victorian Government has refused to implement any licensing relief.
"Licence fees can be 20 to 40 per cent of the cost of production, so it's a very high cost," Mr Nolle said.
"Other states have waived licence fees, I just don't understand why the Victorian state government doesn't do the same."
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