WA croppers hopeful barley trade to China will resume

WA grain growers are hopeful China could start buying their barley for the first time in three years next month without the Australian Government resuming its trade dispute at the World Trade Organisation.

WA Grains Group president Alistair Falconer said local barley growers were “hopeful” the lucrative Chinese market would open up to allow “more competition in the market” after the Government agreed to temporarily suspend its WTO case to give China more time to review the case.

The Government’s three-month extension was due to end on July 11, but was extended a further month at China’s request, to August 11.

On May 18, 2020, China imposed combined duties of 80.5 per cent on exports of barley from Australia for a period of five years.

A spokesman for Foreign Minister Penny Wong and Trade Minister Don Farrell said the Government had been clear in its view that “there is no justification for these duties and that it is in both countries’ best interest for all trade impediments to be removed”.

“In April, Ministers Wong and Farrell announced Australia had agreed to temporarily suspend the WTO case for an agreed three-month period, with a possible fourth month if required,” the spokesman said.

“China has now requested this one-month extension, which we have agreed to.

“If the duties are not lifted at the end of the four-month period, Australia will resume the dispute in the WTO.”

If the agreement is successful in providing a pathway for lifting duties on barley, the Government expects a similar process to be followed to remove trade barriers for Australian wine.

Grain Producers Australia chairman Barry Large said while other export markets had purchased Australian barley during the past two years, and trade for other important grains had continued with China, growers would welcome the return of the barley China market which was worth about $916 million in 2018-19.

He said the re-opening of Australian barley exports to China would be a win for consumers, China’s industry and for Australian grain producers and exporters.

“Barley is an important rotation crop for Australian growers and any optimism on the future outlook is good.

“This process to reach a resolution would be significantly shorter than if the WTO process continued.

“We welcome the Labor Government’s constructive dialogue and positive progress towards stabilising the relationship with China, and creating this process and opportunity to recommence the barley trade.”

Mr Falconer said WA growers hadn’t been waiting around for the market to reopen as demand from the eastern states had encouraged interstate trade at prices far superior to the local market offerings.

“Barley is being shipped to the east coast,” he said.

“It’s in high demand over there due to the dry season.”

He said barley was headed for NSW and QLD cattle producers at a price of $400 a tonne for feed barley — about $120/t more than what growers could get from local buyers.

It may have also been a contributing factor in the rise in barley plantings in WA this season.

The Grains Industry Association of WA July Crop Report said while the wheat area planted in WA was back up to about 55 percent of the total crop area this year, at an estimated 9.9 million tonnes, the barley area had increased slightly to an 4.75mt in mainly the traditional barley belt in central regions of the State.