GrainGrowers, Media Release, 4 August 2023
The decision by China to remove duties on Australian barley is welcome and opens the way to rebuild a $1.2 billion annual trade flow, grower representative body, GrainGrowers, said on 4 August 2023.
GrainGrowers said dialogue between the Australian and Chinese governments had delivered an outcome in the longer-term interests of both countries and Australian growers.
GrainGrowers Chair Rhys Turton said China was a long-standing and valued market for Australian grain, accounting for 60-70% of Australian barley exports.
“Since the imposition of the duties, we have worked closely with industry and government to resolve the situation, which is estimated to have cost some $2.5 billion over a five-year period.”
“GrainGrowers has strongly championed the WTO process, which, although long and complex, has been critical in encouraging the Chinese and Australian governments to find an acceptable solution.”
Mr Turton said Australian barley growers are relieved the situation is resolved.
“Thankfully, we now have a trading environment that allows us to get on with the business of producing high-quality products that meet the needs of our Chinese trading partners.”
Mr Turton said the industry was thankful for the efforts of Ministers Wong, Farrell and Ayres and the Departments of Foreign Affairs and Trade in resolving the situation.
“The Australian grain industry has historically had longstanding customer relationships with Chinese domestic maltsters and brewers, with premium prices paid for specific value-driven products. The decision to remove the duties has opened the door to resume these strong trade links.”
Mr Turton said a key lesson for the industry was to work even more closely with the Australian government to prioritise trade diversification and market access for Australian agriculture and the grains sector as well as deepening existing relationships with customers internationally.
“With around 70% of Australian barley production headed overseas, any concentration of exports makes us vulnerable to external market forces. Market diversification to mitigate those risks is a key priority over the long term for the Australian industry.”
