Demand for high quality barley is strong both in Australia and internationally with Australian barley well recognised for its excellent malt and feed qualities. Australia exported $732 million of malting barley, $647.6 million of feed barley, and $2 million of barley seed in 2018–19. China is the number one market for Australian beef, accounting for about 30 per cent of exports. Going on current climate forecasts and the start to the season so far, the Australian crop now being planted appears to be able to support shipments of that size to China. Chinese imports of Australia … The trade came to … China is banning Australian wine, copper, barley, coal, sugar, timber and lobster exports from Friday, an unconfirmed customs official notice says. Contributions that contravene our Comments Policy will not be published. That tension peaked this week when China launched two trade strikes on Monday and Tuesday of up to $1 billion in Australian beef and barley exports. WA’s grain exports typically represent 40% of Australia’s total grain exports and are sold into more than 30 countries throughout the world. “As part of the Australian barley industry, CBH has received information from the Chinese Ministry of Commerce (MOFCOM) that tariffs on Australian barley are likely to be imposed as a result of its ongoing anti-dumping and countervailing duties investigations. China has been Australia’s top agricultural export market since 2010–11. “Australian barley exporters and the Australian Government have been provided 10 days to respond to the decision.”, WA Minister for Agriculture Alannah MacTiernan. “In terms of exports, Australian businesses selling heavily into the Chinese market stand to lose the most if that market is disrupted,” the researchers write. Your comment will not appear until it has been moderated. Senator Payne insists these are separate issues from the angst over an inquiry. China’s demand for feed barley, especially in its southern regions, is considerable. Subscribe for free to get the latest breaking news and analysis sent to your inbox. If implemented promptly, tariffs payable by Chinese importers could affect two cargoes from Western Australia already on the water. escalating trade dispute over beef and barley, Super funds inject $30 billion into coronavirus recovery. This is an important market for WA growers, with no ready alternatives. China … The academics say “there are important qualifications, however”. “The Chinese Ministry of Commerce’s proposal to impose tariffs on Australian barley is a major blow to WA farmers. In 2018, Australia sold $1.5 billion worth of barley to China but the drought and China's allegations of dumping saw the value of the trade fall to $600 million last year. These markets include Japan, Vietnam, Thailand and India for malt barley, and Japan, Thailand, United Arab Emirates and Saudi Arabia for feed barley.”, CBH chief marketing and trading officer Jason Craig. Barley is not a random choice. They have been designed for maximum efficiency using barley with physical and processing characteristics readily available from Australia. China imported 2.5m tonnes of barley from Australia last financial year, which is down from a peak of 5.9m tonnes in 2016-17, but still very significant. In early 2018, China announced an investigation into United States sorghum which prompted the Chinese Government to impose an import duty of 178.6 per cent on the grain. Exports of goods and services from Australia rose by 3 percent from a month earlier to a seven-month high of AUD 36.39 billion in November 2020, amid improving global demand. Last year, China bought $1.2 billion worth of Australian wine — or more than one-third of Australia's wine exports by value. Australia produces two-row spring barley that is plump and bright with moderate protein content. But he said the federal government should protect the Australian economy from these adjustments using fiscal and monetary policy, rather than pressuring businesses to diversify their exports. To push Australia to abandon its attachment to anti-dumping measures, China has strategically targeted one of Australia’s major exports. Chinese imports of Australia … According to Wood Mackenzie, Australia's iron ore and LNG exports to China are up 8% and 9% year-to-date respectively, compared to a year ago. “This provides a strong incentive to be well informed about both opportunities and risks, and take steps to mitigate the latter, “This is not to say that business risk management is failsafe. Australian barley exports in 2018–19 were $1.38 billion, down 31% over the year. He said Argentine barley exports to China next year could reach as much as 800,000 tonnes depending on prices and the Australia-China trade relationship. According to Wood Mackenzie, Australia's iron ore and LNG exports to China are up 8% and 9% year-to-date respectively, compared to a year ago. It has also banned imports from four abattoirs for allegedly failing to meet Chinese health standards – an “informal retaliation” that provides the Chinese government with plausible deniability against “accusations of explicit economic bullying,” according to academics from the Australian National University. Trade sources have told Grain Central that consumers in China are likely to be just as alarmed as Australia when it comes to the prospect of a tariff on Australian barley, and may seek exemptions from the Chinese Government. That is, Australia can be ‘less dependent’ on China by being ‘more dependent’ on, for example, India or Indonesia,” the academics said. Meanwhile, UTS Australia-China Relations Institute director James Laurenceson and project and research officer Michael Zhou argue in a recent blog post: “A significant trade exposure to China is not, in itself, compelling evidence that Australian businesses have been irresponsible in their risk management, nor that the country as a whole is ‘too dependent’.”. China is Australia’s largest volume export market for beef, accounting for close to 300,000 tonnes in 2019, representing about 29pc of Australia’s total beef exports. This is a function of the drought in eastern Australia, which has diverted a big chunk of the South Australian and Western Australian crops away from export as domestic maltsters and feedgrain users paid a premium to keep grain at home. Confidential documents seen by The Australian Financial Review indicate that China will claim a lack of co-operation from barley growers to justify imposing a 73.6 per cent duty on Australian … If they are to go ahead, the tariffs will have a significant impact on Western Australian growers by reducing the competitiveness of Australian barley into the Chinese market, and we have seen barley prices come off already on the back of this news. Around 88 per cent of Australia’s barley exports to China come from WA. Australia is normally China's No. China had until recently bought as much as 70% of Australia’s barley exports. While we have a long and valued relationship with our Chinese barley customers spanning over 50 years, we have been working hard to establish and strengthen other barley markets for WA growers. Australia’s chemical industry has expanded significantly in recent years, now accounting for around 3.2% of Australian exports. China’s move to impose an 80.5% tariff on imports of barley from Australia is not expected to make a massive dent in Australia’s wheat export market, sources say. “If China does, terrific! The meat export freeze follows China's threats to impose severe anti-dumping tariffs on Australian barley exports, worth $600 million due to drought last year. Exports to China in Australia decreased to 11392061.84 AUD THO in November from 12696184.43 AUD THO in October of 2020. But so far in 2020 Canada has already exported almost as much barley as it did all of last year, with the biggest months yet to come. All rights reserved. Soaking rain in New South Wales means that state is likely to supply its own and some of Queensland’s feedgrain demand. Call 1800 900 090 Email ABARES Report a biosecurity concern Contact the media team. Australia is preparing to take China to the World Trade Organisation if it does not reverse its decision to impose tariffs on up to $1 billion in barley exports. Demand in China for Australian beef spiked dramatically in 2019, driven in large part by African Swine Fever (ASF) and the domestic protein shortage this created. Projections about Australian barley exports in the current crop year put sales to China at 1.5Mt, compared with around 4Mt in an average year of Australian production. Seeding is just underway across the WA grain belt – the timing could not be worse for our growers, who have little to no time to reassess their options for the season. Australian barley exports to China worth AU$1.4 billion (US$960 million) were shaken in October 2018 when China opened an anti-dumping investigation. The most recent tariffs on wine follow similar sanctions on barley, beef and lamb, cotton, timber, coal, … For the year to March, it worked out to be about 130 million litres. China is Australia’s largest barley market, with exports worth $1.5 billion in 2018, although that figure more than halved in 2019 due to the drought. By continuing to use our site you are agreeing to our. Less than a decade ago Australia … China accounted for 60 to 70 per cent of Australia's barley exports and it bought a record of more than 6 million tonnes, worth about $1.5 billion, in 2017. Ms Raynes said China imported 4.5 million tonnes of Australian barley worth $1.2 billion on average. Also, the March dive in the Australia dollar to its lowest point in more than 10 years saw a whack of export grain business get written, much of which has already been shipped. The weaker Australia dollar has spurred export sales of wheat and barley into Asia. Breaking that down to malt and non-malting barley, around 1.3 million tonnes of malting barley, and around 4.2 million tonnes of non-malting barley are also exported each year, though these figures vary from season to season. Australian barley exporters and the Australian Government have been provided with 10 days to respond. Australian winemakers have reported their most valuable yearly export trade since 2007, with China spending more on a smaller volume of wine. Australian beef exports to China were worth $2.67 billion last year and the current ban on beef importation from five major meat processing plants is anticipated to reduce the projected $3.5bn from exports to China by around 35% this year. Among other things, this means making sure Australia “has the right mix of skills” to adapt to changes in the economies of our major trading partners. The tariffs, based on dumping and farm subsidy claims, would end Australia's $1.5 billion barley trade to China; Barley is Australia's second most valuable agriculture export to China China’s modern malting plants have an intrinsic preference for Australian barley. Your comment will not appear until it has been moderated. Australia’s total exports to China were worth A$194.6 billion ($126.5 billion) in the 2017/18 fiscal year, according to official data, meaning barley is around 0.5% of the total. The Australian grains industry and the Federal Government are currently pulling out all stops to dissuade China from imposing tariffs on Australian barley as the wind-up to its anti-dumping investigation which started in late 2018. In 2015–16 they surged ahead with the total value increasing by 50% to over A$419 million.Headline figures like these give the impression of a bonanza, however, business is rarely that straightforward. Harvested grain ha… Although the proposed tariff on our barley exports is linked to an 18-month-old dispute, China’s actions came after Australia called for an independent inquiry into the origins of the coronavirus – prompting calls for more economic diversification. Photo: Paul Carmody. Thermal coal, which is used to generate power, is one of Australia's top-three exports to China. Market Economics director Stephen Koukoulas said pressing Australian businesses to diversify their exports was naive as they can only sell to countries that “want to buy the stuff we make”. Get The New Daily free every morning and evening. In 2018/19, China took $63 billion of Australian iron ore and $14 billion worth of coal. The duty was in place for a few months, and had a short-term impact on feedgrain values in parts of the global market. See below for industry and government responses. Australia will reserve all rights to continue to defend the interests of our barley producers.”, Australian Minister for Trade Simon Birmingham. Barley exporters, faced with a $500 million hit this year after being shut out of China, have done the same thing but they are further down the road. China, though, is less dependent on Australia particularly for barley and beef having groomed other sources, in particular Canada, which now ranks China as its top barley export market. “But the fact is that of the net $180 billion increase in Australia’s annual export value over the past decade, just one country has been responsible for delivering 60 per cent of the jump: China.”. Western Australian barley exports to China were valued at $805 million in 2018-19. Australia has a complicated relationship with China, but may have to make a stand. Year over year, the value of global wheat exports dropped by -7.1% from 2018 to 2019. “But to say we’ve got to change it, I just don’t understand it,” Mr Koukoulas said. We will use the remaining time before China finalises its decision to continue our efforts to resolve this matter satisfactorily and will seek to uphold the integrity of our world leading barley producers. As for barley, at least half of the nation’s exports typically end up in the Middle Kingdom, as part of an annual trade that was worth $1.5 billion in 2018 and $915.4 million in drought-affected 2019. This is mainly because no economy is large enough to match our trade with China. In 2017/18 the WA grains industry exported wheat worth $2.83 billion and barley … Our barley producers operate in a competitive global market without any trade distorting subsidies and price their products in an entirely commercial way. Secondly, they must price into their business models the risk of harmful policy changes from the Chinese government, as the Australian government will sometimes take decisions judged to be in the national interest that run counter to Beijing’s interests and provoke retaliation. They were made in February last year, and are believed to cover a period of investigation from 1 January 2014 to 30 September 2018. This saw China rise from 4th to the top export destination for Australian beef. If one or two tariffs are imposed, a mitigating factor in the near term will be the fact that Australia’s export surplus of barley yet to be priced is historically low. The trade came to … Wool ($3.3b), barley ($1.5b) and beef ($1.0b) were the top three commodities exported to China. We know that WA malting barley is highly valued by brewers in China, who will no doubt be disappointed if this proposal proceeds. Firstly, businesses heavily exposed to China cannot expect a federal government bailout should the Chinese economy suffer a downturn. Calls to diversify Australian exports following a diplomatic blowup with China represent “peak stupidity,” according to one prominent economist. The tariffs are a huge blow to Australia's barley trade with China, which is understood to cover about half of all barley exports. Australian producers exported about $3.16bn in unprocessed wool to China in 2018-19, which represents a larger value and industry reliance on China than barley. Australia exported nearly 75m tonnes of all coal types to China between January and September this year, up 14% from the same period last year, according to figures compiled by Argus. Australian exports to China face $6 billion 'D-Day' ... China introduced hefty tariffs on Australian barley and suspended beef imports from several Australian … According to the Department of Foreign Affairs and Trade, in the financial year 2018-2019, most of that arrived in the form of iron ore ($63.1 billion), coal ($14.1 billion) and natural gas ($16.6 billion). Around 25 per cent, or $11.8 billion, of Australian agricultural exports were destined for China in 2017–18. Inflaming this is the US line that China constructed the COVID-19 virus. Western Australian barley exports to China were valued at $805 million in 2018-19. The organisations making this statement and Australian barley exporters will continue to co-operate with the Chinese Government and work closely with the Australian Government.”, Joint statement from Grains Industry Market Access Forum, Australian Grain Exporters Council, GrainGrowers, Grain Producers Australia and Grain Trade Australia, Grain Central: Get our free daily cropping news straight to your inbox – Click here, Your email address will not be published. Australia is comparatively export focussed with approximately 70% of the total barley crop exported annually. Exports of rural goods increased 6 percent to AUD 3.59 billion, boosted by meat & meat preparations. Australia's barley exports to China were worth $600 million in 2019, falling from $1.5 billion in 2018 because of drought and an effort to diversify into more markets. Wine, cheese, meat and barley have all been caught up in trade tensions between Beijing and Canberra, but China still accounts for 80 per cent of … “We strongly believe there are no grounds for the claims that Australian barley is being dumped or subsidised in the Chinese market. Mr Huang's comments are an indication of the risk the ban poses to Australia's long-term beef exports to China, and the damage to Chinese companies and Australian … Consumption comes from China’s dairy and beef sectors, which are users of China’s own barley and corn crops, or imported products. China often buys around half the barley Australia exports. This is an important market for WA growers, with no ready alternatives. China and Australia do not always see eye to eye when it comes to issues including human rights, or Chinese activity in the South China Sea. “Like Australians, Chinese people love a beer and premium Australian malting barley is in high demand. Australian exports of cotton to China were worth more than $1.1 billion last year. China has ignored Australia's attempts to discuss trade tensions over beef and barley imports, and state governments fear they could become the meat in … China has accused Australia of using subsidies to help its farmers sell barley in China at below-market prices – a practice known as “dumping” – and threatened to impose an 80 per cent import tariff on the grain as a result. Australia exported $732 million of malting barley, $647.6 million of feed barley, and $2 million of barley seed in 2018–19. Based on the latest data from the Australian Bureau of Statistics, that has been the case between 1 December and 31 March, with China buying 628,140 tonnes of the total 1.3 million tonnes (Mt) of barley shipped to all destinations. Beijing imposed tariffs of 80% on the crop after bilateral relations deteriorated . The yet-to-be-finalised tariffs may include a dumping margin of up to 73.6pc and a subsidy margin of up to 6.9pc for barley imported from Australia. Australia is … There was an error submitting the form. WEEKEND news that China is considering putting hefty tariffs on Australian barley has halted any writing of new business into Australia’s biggest barley market for current and new-crop business. His comments come after Trade Minister Simon Birmingham told the ABC’s Insiders that his Chinese counterpart was ignoring his calls amid an escalating trade dispute over beef and barley. This saw China rise from 4th to the top export destination for Australian … The precarious relationship between the US as a long-term ally of Australia and China may have some effect on China’s response to historic pricing of Australian barley. Save my name, email, and website in this browser for the next time I comment. Copyright © 2021 The New Daily. China’s investigation has looked for evidence of injurious dumping as defined by World Trade Organisation rules, and sources have told Grain Central it has mulled over submissions from around 40 Australian barley exporters. The move caught up to 20 cargoes of US sorghum on the water. Industry data … China was Australia’s largest market for barley, with an export value of $915.4 million, followed by Japan ($226.7 million) and Thailand ($90 million). Trade has dwindled in recent years due to big Chinese stocks of corn, but the market can be an important one for Australian feed barley exporters. Australian barley exports to China worth AU$1.4 billion (US$960 million) were shaken in October 2018 when China opened an anti-dumping investigation. Australia is comparatively export focussed with approximately 70% of the total barley crop exported annually. Whilst Australia respects China’s right, as with any nation, to undertake domestic investigations into anti-dumping matters, we do not accept that there is a prima facie case, let alone a conclusive case, to find dumping by or subsidy of Australian producers. Your email address will not be published. China announced Monday it had slapped punitive tariffs of more than 80 per cent on barley imports from Australia. Australian coal, gas and iron ore exports to China have surged as Beijing threatens economic retaliation for the Morrison government’s pursuit of an independent inquiry into the coronavirus. The State Government will urge the Australian Government to work closely with the Chinese Ministry of Commerce to find a fair outcome for our growers. Aside from all this, Australian barley growers and exporters are hopeful that China’s decision finds in their favour as being an open and accountable source of grain. “At a national level, claims of being ‘too dependent’ on China for exports assume that an alternative country stands ready to buy Australian goods and services. Around 88 per cent of Australia’s barley exports to China come from WA. The meat export freeze follows China's threats to impose severe anti-dumping tariffs on Australian barley exports, worth $600 million due to drought last year. “Stuff is sold where we can sell it,” Dr Holden told The New Daily. Since the 1990s, Australia and China have built a strong relationship around barley. In 2019, Australia exported 300,133 tonnes swt of boxed beef, worth A$2.67 billion. 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