China: One million tonnes of Australian malting barley exported this year to China

There was always a natural link between the demand for Australian beer consumption and malting barley, but it now seems the relationship has become dependent on how much beer the Chinese are drinking, according to Easygrain as of August 10.Chinese beer drinkers and Australian graingrowers have developed a common interest when it comes to beer, with one million tonnes of this year’s barley harvest exported to China.

More than 60 % of export malting barley is bound for Chinese breweries, which are being pushed hard by that country’s astounding growth in demand for beer. Chinese beer consumption is growing at 10 per cent a year and the supplier quenching most of that thirst is Australia, with a forecast 1.15 million tonnes of our malting barley to be exported to China in 2005/06. The next biggest, Canada, will supply less than half that.

Australia is lucky to have the majority share of this huge market, but we can’t afford to sit back and sip our beer, as plenty of other countries are willing and able to take some of the froth off the top. Addressing the Grains Research and Development Corporation supported ‘Investing in the Future’ Nuffield seminar, experienced barley marketer, Alan Dagg outlined that Australian barley growers compete with Canadians and Europeans, but still retain a healthy lead over them.

Nevertheless, it seems that competition from other nations is not the only factor that could slow China’s thirst for our malting barley.

Demand for technology could slow demand for beer in China as everyone wants to own a mobile phone, computer and, of course, the ultimate status symbol, a car.

Finally, consumers will have less discretionary funds to spend on beer and that could slightly slow demand for the malting barley from Australia.