Australia & China: Australian barley expected to continue to dominate in China�s barley imports

Australian barley’s dominant position in the Chinese market is set to continue and Australia’s substantial share of the Chinese wheat market also remains strong, although facing competition from North American suppliers.

That was the message COFCO International Australia chief executive officer, Yebin “Bruce” Li, presented to the Grain Industry Association of Western Australia (GIWA) forum in Perth last week, UkrAgroConsult reported on October 8.

Mr Li said Australian barley currently held a 66 per cent share of the Chinese market, averaging 4 million tonnes from China’s 6.5 mln tonnes total imports, and there was further growth potential in feed (animal protein) imports.

Mr Li said there was an inelastic base in the Chinese wheat market where Australia had a 25pc market share, contributing 1 mln tonnes of China’s 4 mln tonnes wheat imports.

However, the Australian product faced competition from the United States and Canada.

Focussing on the future for Western Australia grain exports to China, Mr Li said Western Australia’s malt barley varieties had a strong reputation with Chinese maltsters.

“There is steady growth in demand for ‘healthy foods’ so Western Australian oats have a strong quality reputation and high consumer recognition,” he said.

“The expected long term demand for Australian grain is positive, based on a good reputation for low moisture content and lack of contaminants; Australia needs to protect this reputation as a competitive edge.”

Mr Li said the changing appetites of the Chinese “millennial middle class” showed increased preferences for high protein bread and pastries, beef, wine, high quality drinking water, health foods and non-GMO packaged oil.