Australia is normally China's No. Australia is comparatively export focussed with approximately 70% of the total barley crop exported annually. Australian barley exports in 2018–19 were $1.38 billion, down 31% over the year. 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. 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. Australian producers exported about $3.16bn in unprocessed wool to China in 2018-19, which represents a larger value and industry reliance on China than barley. Value of Australian wine exports ($m) in major markets This appears to have caught some domestic market consumers napping … “Australian barley exporters and the Australian Government have been provided 10 days to respond to the decision.”, WA Minister for Agriculture Alannah MacTiernan. “Stuff is sold where we can sell it,” Dr Holden told The New Daily. Tourism is Australia’s largest services export and brings in $21.6 billion a year, making up about 5.4 per cent of exports. “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. 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. China and Australia do not always see eye to eye when it comes to issues including human rights, or Chinese activity in the South China Sea. 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 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 has since blacklisted four Australian abattoirs and threatened to slap an 80 per cent tariff on barley imports. China announced Monday it had slapped punitive tariffs of more than 80 per cent on barley imports from Australia. 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. 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. 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. This is an important market for WA growers, with no ready alternatives. But so far in 2020 Canada has already exported almost as much barley as it did all of last year, with the biggest months yet to come. They were made in February last year, and are believed to cover a period of investigation from 1 January 2014 to 30 September 2018. The duty was in place for a few months, and had a short-term impact on feedgrain values in parts of the global market. Firstly, businesses heavily exposed to China cannot expect a federal government bailout should the Chinese economy suffer a downturn. 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 … 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 terms of exports, Australian businesses selling heavily into the Chinese market stand to lose the most if that market is disrupted,” the researchers write. Its low moisture and consistent quality make Australian barley malt with characteristics familiar to barley technical specialists in China’s malting and brewing industries. 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. Western Australian barley exports to China were valued at $805 million in 2018-19. Photo: Paul Carmody. 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. 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. 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. China often buys around half the barley Australia exports. “But to say we’ve got to change it, I just don’t understand it,” Mr Koukoulas said. 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. Australia exported $732 million of malting barley, $647.6 million of feed barley, and $2 million of barley seed in 2018–19. In 2018/19, China took $63 billion of Australian iron ore and $14 billion worth of coal. 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. It has also banned imports from four abattoirs for allegedly failing to meet Chinese health standards – an “informal retaliation” that provides the Chinese government with plausible deniability against “accusations of explicit economic bullying,” according to academics from the Australian National University. 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. 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. To push Australia to abandon its attachment to anti-dumping measures, China has strategically targeted one of Australia’s major exports. The academics say “there are important qualifications, however”. 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. Australia is preparing to take China to the World Trade Organisation if it does not reverse its decision to impose tariffs on up to $1 billion in barley exports. 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. The tariffs are a huge blow to Australia's barley trade with China, which is understood to cover about half of all barley exports. Going on current climate forecasts and the start to the season so far, the Australian crop now being planted appears to be able to support shipments of that size to China. Soaking rain in New South Wales means that state is likely to supply its own and some of Queensland’s feedgrain demand. Australian exports to China as a percentage of total exports now stand at 38 per cent, up from 34 per cent. Australian beef exports to China were worth $2.67 billion last year and the current ban on beef importation from five major meat processing plants is anticipated to reduce the projected $3.5bn from exports to China by around 35% this year. China is the biggest source of tourists to Australia. 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). Market Economics director Stephen Koukoulas said pressing Australian businesses to diversify their exports was naive as they can only sell to countries that “want to buy the stuff we make”. The State Government will urge the Australian Government to work closely with the Chinese Ministry of Commerce to find a fair outcome for our growers. In 2019, Australia exported 300,133 tonnes swt of boxed beef, worth A$2.67 billion. China takes in more than 50% of Australian barley exports, most of which it is malted barley. 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. “This provides a strong incentive to be well informed about both opportunities and risks, and take steps to mitigate the latter, “This is not to say that business risk management is failsafe. "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 of barley to China… 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. 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. Australia is comparatively export focussed with approximately 70% of the total barley crop exported annually. Copyright © 2021 The New Daily. As it stands, almost a third (32.6 per cent) of Australian exports go to China. Around 88 per cent of Australia’s barley exports to China come from WA. Australian exports of cotton to China were worth more than $1.1 billion last year. Beijing imposed tariffs of 80% on the crop after bilateral relations deteriorated . 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. 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. China had until recently bought as much as 70% of Australia’s barley exports. 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. There was an error submitting the form. 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. This saw China rise from 4th to the top export destination for Australian … The most recent tariffs on wine follow similar sanctions on barley, beef and lamb, cotton, timber, coal, … For the year to March, it worked out to be about 130 million litres. Calls to diversify Australian exports following a diplomatic blowup with China represent “peak stupidity,” according to one prominent economist. We know that WA malting barley is highly valued by brewers in China, who will no doubt be disappointed if this proposal proceeds. Exports of rural goods increased 6 percent to AUD 3.59 billion, boosted by meat & meat preparations. Your email address will not be published. China imported 2.5m tonnes of barley from Australia last financial year, which is down from a peak of 5.9m tonnes in 2016-17, but still very significant. ‘Peak stupidity’: Calls to diversify Australian exports criticised. #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. 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.”. “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.”. ... China introduced hefty tariffs on Australian barley and suspended beef imports from several Australian … “If an Indonesian business said, ‘Look, we want to buy more of your coal’, I’m sure the [Australian] coal producers would deliver.”. Exports to China in Australia decreased to 11392061.84 AUD THO in November from 12696184.43 AUD THO in October of 2020. This page includes a chart with historical data for Australia Exports to China. Trade has dwindled in recent years due to big Chinese stocks of corn, but the market can be an important one for Australian feed barley exporters. Australia has a complicated relationship with China, but may have to make a stand. These markets include Japan, Vietnam, Thailand and India for malt barley, and Japan, Thailand, United Arab Emirates and Saudi Arabia for feed barley.”, CBH chief marketing and trading officer Jason Craig. “We strongly believe there are no grounds for the claims that Australian barley is being dumped or subsidised in the Chinese market. Last year, China bought $1.2 billion worth of Australian wine — or more than one-third of Australia's wine exports by value. The trade came to … “The Australian Government is deeply concerned by reports that unjustified duties may be levied on Australian barley imports into China. As it stands, almost a third (32.6 per cent) of Australian exports go to China. Exports of goods and services from Australia rose by 3 percent from a month earlier to a seven-month high of AUD 36.39 billion in November 2020, amid improving global demand. This page includes a chart with historical data for Australia Exports to China. Beijing slapped an 80 per cent tariff on imports of a number of Australian crops, including malting barley. “If China does, terrific! 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. Around 88 per cent of Australia’s barley exports to China come from WA. escalating trade dispute over beef and barley, Super funds inject $30 billion into coronavirus recovery. If China is not in the market, barley’s discount to wheat will widen from the typical 15-20 per cent. Also, the March dive in the Australia dollar to its lowest point in more than 10 years saw a whack of export grain business get written, much of which has already been shipped. Australia takes China to WTO over barley tariffs. “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. Around 25 per cent, or $11.8 billion, of Australian agricultural exports were destined for China in 2017–18. 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. In 2017/18 the WA grains industry exported wheat worth $2.83 billion and barley … Chinese imports of Australia … Harvested grain ha… Get The New Daily free every morning and evening. See below for industry and government responses. Australia produces two-row spring barley that is plump and bright with moderate protein content. If they are to go ahead, the tariffs will have a significant impact on Western Australian growers by reducing the competitiveness of Australian barley into the Chinese market, and we have seen barley prices come off already on the back of this news. Required fields are marked *. Our barley producers operate in a competitive global market is plump and bright with moderate protein content bilateral relations.... 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