Australia eyes Chinese oat market with record harvest

Producers in Western Australia expect a record oat harvest this season, aiming to challenge Russia’s position on the Chinese market. The strong crop is set to lower prices and boost demand from Asia’s oat milk and milling oat sectors, particularly from China.

According to the Grain Industry Association of Western Australia, oat production in the state is projected at 857,500 tons from just over 400,000 hectares. This is significantly higher than 665,000 tons in 2024–25 and more than double the 355,000 tons harvested in 2023–24, reports Grain Central.

Data from Clear Grain Exchange show that oat prices in Western Australia have dropped from over $400 per ton in previous years to around $300 per ton in 2025–26. Essantis co-owner Andrew May said this combination of higher production and lower prices has made Australian oats more competitive globally. “In recent years, smaller crops and high prices reduced demand for Australian oat products, while countries like China turned to cheaper suppliers such as Russia,” he explained.

May noted that the oat milk sector is a rapidly expanding, high-value market across Asia. “Demand is growing not only in mature economies like Japan, Taiwan, and South Korea, but also in developing markets such as Vietnam, Indonesia, and Thailand. Younger consumers increasingly choose oat milk for environmental, taste, and health reasons,” he said.

Driven by strong Asian demand, Essantis has expanded its processing capacity. In 2024, the company launched a new oat flour facility in Wagin, the largest of its kind in the Asia-Pacific region, capable of producing 25,000 tons of oat flour annually. The plant is dedicated to supplying ingredients for Asian oat milk producers — a market May says “is growing faster than we can supply.”

Tags: Australia, Russia, China, oats