Exports to China in Australia decreased to 11392061.84 AUD THO in November from 12696184.43 AUD THO in October of 2020. China’s modern malting plants have an intrinsic preference for Australian barley. China is banning Australian wine, copper, barley, coal, sugar, timber and lobster exports from Friday, an unconfirmed customs official notice says. Australia will reserve all rights to continue to defend the interests of our barley producers.”, Australian Minister for Trade Simon Birmingham. Less than a decade ago Australia … Consumption comes from China’s dairy and beef sectors, which are users of China’s own barley and corn crops, or imported products. 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. Australia is a dominant player in world barley export markets, representing 30-40 percent of the world’s malting barley trade and 20 percent of the feed barley trade. Photo: Paul Carmody. Western Australian barley exports to China were valued at $805 million in 2018-19. For the year to March, it worked out to be about 130 million litres. 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. 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. That is, Australia can be ‘less dependent’ on China by being ‘more dependent’ on, for example, India or Indonesia,” the academics said. Australian barley exports in 2018–19 were $1.38 billion, down 31% over the year. Firstly, businesses heavily exposed to China cannot expect a federal government bailout should the Chinese economy suffer a downturn. Beijing imposed tariffs of 80% on the crop after bilateral relations deteriorated . This appears to have caught some domestic market consumers napping … Our barley producers operate in a competitive global market without any trade distorting subsidies and price their products in an entirely commercial way. Subscribe for free to get the latest breaking news and analysis sent to your inbox. Get The New Daily free every morning and evening. Barley is not a random choice. “The Australian barley industry understands the People’s Republic of China, Ministry of Commerce (MOFCOM) are potentially proposing to place tariffs on barley imported from Australia as a result of their ongoing anti-dumping and countervailing duties investigations. In 2017/18 the WA grains industry exported wheat worth $2.83 billion and barley … 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. 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. Year over year, the value of global wheat exports dropped by -7.1% from 2018 to 2019. Australian exports to China face $6 billion 'D-Day' “But to say we’ve got to change it, I just don’t understand it,” Mr Koukoulas said. 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. 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. China has been Australia’s top agricultural export market since 2010–11. Australia is comparatively export focussed with approximately 70% of the total barley crop exported annually. “The Australian Government is deeply concerned by reports that unjustified duties may be levied on Australian barley imports into China. Exports to China in Australia averaged 3188860.78 AUD THO from 1988 until 2020, reaching an all time high of 14554765.09 AUD THO in June of 2020 and a record low of 64000 AUD THO in November of 1989. Beijing slapped an 80 per cent tariff on imports of a number of Australian crops, including malting barley. 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. It is understood MOFCOM may provide their final determination on, or before 19 May 2020. This is an important market for WA growers, with no ready alternatives. 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. Mr Huang said Xiamen Xiangyu had also stopped importing Australian barley since China imposed tariffs and duties of up to 80 per cent following an … Exports to China in Australia decreased to 11392061.84 AUD THO in November from 12696184.43 AUD THO in October of 2020. 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. Australian wine exports to China are booming. Australia’s chemical industry has expanded significantly in recent years, now accounting for around 3.2% of Australian exports. 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. In 2019, Australia exported 300,133 tonnes swt of boxed beef, worth A$2.67 billion. The trade came to … Please try again. Around 88 per cent of Australia’s barley exports to China come from WA. ... China introduced hefty tariffs on Australian barley and suspended beef imports from several Australian … All rights reserved. Around 25 per cent, or $11.8 billion, of Australian agricultural exports were destined for China in 2017–18. 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 page includes a chart with historical data for Australia Exports to China. 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. Australia is comparatively export focussed with approximately 70% of the total barley crop exported annually. 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. Rather, simply that the basic incentives businesses have to get the risk/return equation right are, for the most part, not there to the same extent for the Australian government.”. Thermal coal, which is used to generate power, is one of Australia's top-three exports to China. Contributions that contravene our Comments Policy will not be published. Copyright © 2021 The New Daily. Australia exported $732 million of malting barley, $647.6 million of feed barley, and $2 million of barley seed in 2018–19. The main grains grown are wheat, barley, canola, lupins and oats. 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 … See below for industry and government responses. 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 has a complicated relationship with China, but may have to make a stand. 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. Harvested grain ha… “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 often buys around half the barley Australia exports. 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 Chinese Ministry of Commerce’s proposal to impose tariffs on Australian barley is a major blow to WA farmers. If implemented promptly, tariffs payable by Chinese importers could affect two cargoes from Western Australia already on the water. 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. This saw China rise from 4th to the top export destination for Australian … China has since blacklisted four Australian abattoirs and threatened to slap an 80 per cent tariff on barley imports. 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). The tariffs are a huge blow to Australia's barley trade with China, which is understood to cover about half of all barley exports. Australia produces two-row spring barley that is plump and bright with moderate protein content. The Western Australian Government has always maintained good relationships with China as our major trading partner, and we will be making direct contact with the Chinese Consul General on the matter. 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. 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. Australia's relationship with China is taking a turn for the worse, with the Asian giant lapping a hefty tariff on Australia's barley imports. 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. University of New South Wales economics professor Richard Holden said Australia’s large export dependence on China left it vulnerable to changes in the global superpower’s economic policies and market conditions. 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 … 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. Chinese imports of Australia … It means SA, WA and Victoria are likely to have big export surpluses of grain to shift from December onward. Mr Koukoulas told The New Daily it was “an observable fact” there is an economic issue with our “heavy trade dependence on China”. 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. 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. This saw China rise from 4th to the top export destination for Australian beef. 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. By continuing to use our site you are agreeing to our. 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. Since the 1990s, Australia and China have built a strong relationship around barley. 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. In 2018/19, China took $63 billion of Australian iron ore and $14 billion worth of coal. They have been designed for maximum efficiency using barley with physical and processing characteristics readily available from Australia. 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 … 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. As it stands, almost a third (32.6 per cent) of Australian exports go to China. China is the number one market for Australian beef, accounting for about 30 per cent of exports. 2020 has been a pretty bad year for Australian exports to China. Australian barley exporters and the Australian Government have been provided with 10 days to respond. “Stuff is sold where we can sell it,” Dr Holden told The New Daily. 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. If China is not in the market, barley’s discount to wheat will widen from the typical 15-20 per cent. "Bulk grain terminal shipping stems show about 650,000 mt [of barley] shipped in April and May [to China], so season-to-date, Australia is estimated to have exported over 1.2 million mt … 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. 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. The most recent tariffs on wine follow similar sanctions on barley, beef and lamb, cotton, timber, coal, … We have worked with the Australian grains industry to mount the strongest possible case against China’s anti-dumping investigation. “We strongly believe there are no grounds for the claims that Australian barley is being dumped or subsidised in the Chinese market. 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. Exports of rural goods increased 6 percent to AUD 3.59 billion, boosted by meat & meat preparations. As it stands, almost a third (32.6 per cent) of Australian exports go to China. Destinations other than China absorbed the US export surplus prior to China terminating its anti-dumping case against the grain. Australia takes China to WTO over barley tariffs. Australia is normally China's No. Inflaming this is the US line that China constructed the COVID-19 virus. 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 … Around 88 per cent of Australia’s barley exports to China come from WA. 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). China had until recently bought as much as 70% of Australia’s barley exports. The move caught up to 20 cargoes of US sorghum on the water. We know that WA malting barley is highly valued by brewers in China, who will no doubt be disappointed if this proposal proceeds. “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.”. 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. 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. 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. Your comment will not appear until it has been moderated. We sell heaps of those and other things to China and benefit hugely from it.”. Harvesting barley in November 2019 at Cascade near Esperance, WA. escalating trade dispute over beef and barley, Super funds inject $30 billion into coronavirus recovery. 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. 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. #6 Cereals (AUD$7.1 billion) Whilst we love our Weet Bix and Fruit Loops, cereal is a top export of Australia accounting for just under 2% of all exports. “If countries other than China do not want to buy our iron ore, have holidays here, buy our barley, we cannot make them,” Mr Koukoulas said on Twitter. China is the biggest source of tourists to Australia. Australia is … 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. CBH will continue to co-operate with the Chinese Government and work closely with the Australian Government in hope of achieving a better outcome for our growers and customers. 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 Last year, China bought $1.2 billion worth of Australian wine — or more than one-third of Australia's wine exports by value. 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. 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. Ms Raynes said China imported 4.5 million tonnes of Australian barley worth $1.2 billion on average. How Joe Biden’s presidential inauguration stacks up against Donald Trump’s big day, Impeachment or not, Trump’s grip on rank-and-file Republicans is strong and unlikely to slip, Value of new home loans hits record high for second month in a row, Morrison government confusion over China will damage the economy, experts warn, The New Daily uses cookies. 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. In Australia and internationally with Australian barley imports from Australia widen from the angst over an inquiry people love beer! 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