China Imposes High Tariffs, Australian Barley Finds New Markets

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Australian farmers are shipping their first shipment of malt barley to Mexico to continue fighting Chinese trade sanctions, the Australian Financial News reported on January 21, 2021.

These products may eventually be made into Corona beer. Barley, which is close to a record harvest, is being shipped from Australian ports to the Middle East and Southeast Asia, while major agricultural rivals are also taking action to restrict exports.

China’s tariffs, which cause serious damage to trade, have begun to reshape international markets. Mexico, the world’s fourth-largest beer producer, will receive Australia’s first wheat barley later this month. Australia’s feed barley exports to Saudi Arabia have jumped from almost zero last year to about 2 million tonnes by 2020-21.

At the peak of its multi-billion dollar-a-year trade with China, Australia were ignoring these markets.

In Western Australia, a state which heavily depends on export, barley prices are at their highest level since May last year. It was then that China began imposing an 80 per cent tariff on Australian imports of barley, the first in a series of trade crackdowns on local farmers, fishermen, winemakers and loggers.

The breakthrough deal, which was shipped to Mexican barley, was brokered by CBH, Australia’s largest co-operative in the Australian grain industry. The CBH has worked with thousands of Western Australian farmers who have been hit hardest after China imposed its import sanctions.

Mexico produces 139 million litres of beer a year. That compares with about 370 million litres in China and 16.1 million litres in Australia. Mic Fels, chairman of the Grains Committee of the Western Australian Farmers’ Federation, said that ‘ It’s great that the industry has access to a new market and farmers have never doubted the demand for barley outside China’.

AEGIC (Australian Export Grains Innovation Centre) held several seminars in November, particularly on the huge market for noodles, bread and cakes in South Korea and Japan. In particular, the Indonesia Market Event, held on 12 November 2020, attracted more than 70 large Indonesian flour merchants. The noodle market is also impressive in Indonesia.

AEGIC has also made a report on the Anticipated Trends of the Global Barley Consumption until 2030. The report expressed that while China remains the main market of Australian grains, there are other emerging markets, such as Japan, the Middle East, Vietnam, India, South Korea, Indonesia, Philippines, South America and Africa.

Information resources from:
1) Australia finance news
2) Aegic.org.au
3) GIWA: Grain Industry Association of Western Australia

Author: 荣荣
Editor: XO酱

Disclaimer: The views expressed here are those of the authors and do not necessarily reflect the views of GNEWS.org.

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