WA’s first barley shipment to China in three years sets sail from CBH Group’s Kwinana Grain Terminal

WA’s grains industry is celebrating after the first barley shipment destined for China in nearly three years set sail from the Kwinana Grain Terminal this week, loaded with nearly 50,000 tonnes likely to be made into beer. The Majestic Island ship laden with Maximus malt barley departed the CBH Group terminal at 7.15am on Tuesday, August 29, kicking back into gear what was once a $1-2 billion trade after three years of crippling bans. The shipment was first bound for CBH Group’s Esperance Grain Terminal where it would be topped up with another 5000 tonnes after being co-ordinated by Eastern States-based grain trader Australian Grain Exports. CBH chief executive Ben Macnamara said it was an historic moment for WA’s $9 billion grains industry and the reinstating of the trade would provide farmers with more options when selling their grain. It has been three years since China imposed trade-ending, 80 per cent tariffs on Australian barley at the height of diplomatic trade tensions in 2020. It argued Australian barley was being “dumped” cheaply on the Chinese market. CBH and the wider industry have always refuted the claims, which wiped out trade worth nearly $1b a year. The Chinese Government lifted the tariffs on August 4, with Australia’s biggest grain exporter CBH and Eastern States trader Emerald Grain regaining access five days later on August 9. Reinstating the trade is expected to be worth between $860 million and $1.3b to the nation’s grains industry. Prices paid to farmers $15 per tonne when the tariffs were lifted, and have risen a further $35-40 since. Mr Macnamara said the delay in the co-operative’s ability to restart trading to China was not concerning and the company had been “methodical” in its approach in letting the negotiations play out. CBH chair Simon Stead said there had been a lot of “hard work and collaboration” between government ministers, public servants and industry to lead to this outcome. “We have seen a significant, immediate move, in the barley price by about $50 per tonne for feed and $60-70 per tonne for malting (to reach $345-$358 per tonne). “China is a very important market for our barley, they are responsible for 80-90 per cent of malt produced in Asia. “It’s not only important for us, but also for the Chinese to have access to the highest quality barley in the world, that Australia produces.” Federal Trade Minister Don Farrell, Agriculture Minister Murray Watt and Resources Minister Madeleine King gathered at the Kwinana Grain Terminal on August 29 to mark the ship’s departure. Mr Watt said the occasion marked “a great day for WA and for WA agriculture”. He said before China imposed restrictions on Australian barley “the trade was worth anything up to $2 billion per year”, and to restore the market “was great for growers, as well as the WA economy”. “We know that WA is an agricultural powerhouse of our nation,” Mr Watt said. “In particular, the grains industry, which in the last couple of years has produced record harvests — which has been great news for growers and fantastic for the State and national economy as well. “To be able to restore this important market for our barley producers is a huge step forward in growing this grains industry well into the future.” Mr Watt said the Federal Government was “very confident” demand for Australian barley was strong in China and industry would build up to exporting the high volumes it had once set to China as shipments increased. He said a major factor in restoring the trade was the demand from Chinese brewers who were “incredibly keen to get access to Australian barley again due to the very high quality”. “They have had to make due for a period of time with an inferior product from other countries,” Mr Watt said. The Federal Government has now turned its attention to existing, crippling tariffs on Australian wine, with Beijing’s backdown on barley giving other exporters hope of a further easing of trade tensions. Mr Farrell said the Commonwealth was working to “stabilise” the relationship with the Chinese Government in an effort to remove “a whole lot of impediments on a variety of different products, including barley”. “We still have more to do on wine, lobster, on hay, and on a range of beef products”, but it will take “persistence and perseverance” and time,” he said. “I am confident that the good working relationship that we achieved with the Chinese Government will, in a short space of time, result in all of those restrictions being removed. “I look forward to a long, strong and continuing relationship with the Chinese Government to make sure that Australia’s magnificent wheat and barley producers sell their product.”