Canada: Canada’s barley exports to China expected to reach new heights this season

Canada is a relatively small but growing exporter of barley. Historically shipped to the United States and Japan as an alternative livestock feed ingredient to corn or for malting purposes, exports to the United States were steady on consistent demand and logistical advantages, USDA said in their July report.

Just in five years, Canada's export pattern has been shifted significantly. Once the largest destination, the United States is now seeing less of Canada's barley coming across the border. Over the last several years, border-adjacent states such as Minnesota, Wisconsin, and North Dakota have seen the largest drop in barley shipments. Canada’s exports to Japan have fallen precipitously as well.

In the place of the United States and Japan, China has emerged as the top destination. China's total imports of barley have risen dramatically over the last half-decade, as there are no import quotas or biotech related restrictions. While China’s strong appetite for feed barley will be met primarily by Australian supplies, demand for the price-competitive Canadian barley is likely to continue as well. Canada’s exports for the Oct-May period to China have already exceeded the total volume shipped in the entire 2016/17. A larger expected Canadian barley crop in 2018/19, coupled with a lower crop forecast for Australia, could see Canada’s barley exports to China reach new heights in 2018/19, experts believe.

09 July, 2018