Australia & China: Australian barley exports to China on track to beat record shipments of 2014-15

Exports of Australian barley to China are on track to threaten the record shipments set in 2014-15 and could almost double last year exports to the Asian nation, the Weekly Times Now reported on April 18.

Lachstock Consulting has estimated 5.34 million tonnes of malting and feed barley would be sent to China via bulk shipments from the 2016-17 harvest.

If this is realised it will go close to breaking the previous barley export record of 5.41 million tonnes shipped to China in 2014-15.

It would also be a big jump from last season’s exports of about 2.7 million tonnes.

Lachstock Consulting managing director Lachie Stevens said they estimated about 2.9 million tonnes of barley had been exported in bulk to China so far from the 2016-17 harvest.

But including container trade Mr Stevens said, exports to the Asian nation were likely well over three million tonnes.

“Another 150,000 tonnes was sold into China last week,” Mr Stevens said. “They have been sniffing around for ages, and there has been strong exports of malt and feed barley.”

The huge demand in 2014-15 came after the Chinese Government banned a type of US and Argentinian corn extract in late 2013, leaving Chinese livestock feed buyers to substitute feed barley and sorghum for corn.

However, the Chinese Government has since lifted that ban, made grain import permits more difficult.

Last year Chinese authorities also scrapped income support for local corn growers, in an attempt to clear the record corn stockpile.

Nidera barley trader Tim Murray said most of the trade was tipping barley exports to China to exceed five million tonnes this season.

He said despite changes to Chinese farm corn subsidies, barley remained competitively priced against Chinese corn.

“Domestic corn prices have remained quite strong despite the government’s attempt to clear their stocks,” he said.

“I think we will go close to this record. We had record Australian production (last year) and we will have record exports … it’s likely as long as there is no political decisions or changes (to policies.)” Mr Stevens said the high demand was having little impact on barely values, which were relatively depressed due to the huge global stocks.

However, he said “long term it would be good as it clears the supply from the market”.

Before Easter last week feed barley delivered to Portland and Melbourne was at A$171-177/tonne, while malting barley delivered Portland and Geelong was about A$176-180/tonne.

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