Australia & China: China ships 314,000 tonnes of Australian barley since lifting import tariff

It’s news that will set the Aussie grains industry cheering, The West Australian reported on December 8.

China has publicly confirmed it has accepted Australian barley, likely to be made into beer, for the first time in three years.

The first shipment of Western Australia barley since the Asian powerhouse lifted its 80.5 per cent tariff left the Kwinana Grain terminal on August 29. It carried some 55,000 tonnes of Maximus malt barley bound for China.

Fresh data from China’s customs agency shows 314,000 tonnes of barley from Australia, valued at AU$139 million, has cleared customs between that first shipment in late August and the end of October. It’s the first time officials have confirmed that Australian barley has arrived in China in more than three years.

The country slapped the hefty tariffs on Australian barley imports in May 2020. Before then, the trade was worth almost AU$920 million a year. The vast majority of these exports came from Western Australia farmers.

Agriculture Minister Murray Watt said seeing “the return to business-as-usual trade in barley” after years of disruption was great.

“Better outcomes for farmers mean stronger regional communities, which is good for our country,” he said.

“Agricultural trade between countries benefits Australians and provides China’s large population with high-quality produce, which now includes barley.”

CBH Group chief executive Ben Macnamara said China was now expected to be the largest consumer of Australian barley in the coming financial year.

“China is now the largest importer of barley in the world, so the reopening of such a large market is an exciting opportunity for Western Australian growers,” he said.

“It’s also great news for customers in China, who now have the flexibility of repurchasing WA’s high-quality barley.”

The grain terminal is in Resources Minister Madeleine King’s seat of Brand, and she said the resumption of trade was good for Australian farmers and meant Chinese consumers could “once again enjoy beer brewed with the highest quality malting barley in the world”.

Over the past year, China has slowly eased trade impediments it imposed on a range of Australian goods in response to what it saw as diplomatic and political slights. The only remaining imposts to be dealt with are fresh lobsters and some beef exports, while there is a five-month process in train aimed at resuming the wine trade.

“Trade relations with China are on a positive trajectory thanks to this Government’s mature approach to international relations,” Trade Minister Don Farrell said.

“The removal of duties on Australian barley by China in August was a much-needed shot in the arm for Australian farmers.

“I look forward to the removal of duties on Australian wine following the completion of a review by China, and I will continue to press for the re-entry into China of Australian live lobster and red meat.”

08 December, 2023