Australia & China: Australia’s two largest barley producers cleared to export to China

CBH Group and Emerald Grain, Australia’s two largest barley producers, have been given approval by the Chinese government to resume barley shipments to China, according to the Australian Associated Press.

Australia’s agriculture minister, Murry Watt, confirmed on Aug. 9 that both would be reinstated as registered exporters. The two agribusiness companies were not on the customs list when China announced on Aug. 4 that its three-year 80% duty on barley exports from Australia had been lifted.

Nearly 130 Australian exporters are now registered to export barley to China, the Australian Associated Press reported.

“We welcome this positive news and look forward to working with our customers to return to exporting Western Australian barley to China, a longstanding market,” CBH told the Australian Associated Press through a spokesperson.

China blocked CBH grain imports in September 2020 after it claimed customs found pests in a shipment of barley.

The 80% duty had been in place since June 2020. China said the tariff was due to Australia “dumping” barley, meaning its exports were priced lower than China’s domestic supply. However, Australia’s hardline stance on China’s role regarding the origins of the global COVID-19 pandemic was also reportedly a factor.

Prior to the tariff being imposed, Australia was by far the largest supplier of barley to China.

Pat O’Shannassy, chief executive officer of Grain Trade Australia (GTA), said China’s Ministry of Commerce determined that due to a change in industry circumstances that lifting the anti-dumping and countervailing duties would be in the public interest.

“China is historically a very important export market for barley from Australia over many decades, with very strong customer relationships and considerable cooperation between industry partners in plant breeding and technical support to meet China’s needs,” O’Shannassy said. “Our barley exports to China peaked at 6.3 million tonnes in 2016-17 before falling to negligible levels once the duties were imposed in 2020, so we very much hope this decision will enable our trade relationships and exports resume.”

During the past three years, China relied primarily on France, Canada, Argentina and Ukraine for its barley supplies.

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