China’s barley tax hike hits SA farmers hard
SA’s barley farmers are reeling after China slapped an 80 per cent tax hike on imports, forcing them to seek to sell their crops elsewhere.
SA News
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China’s decision to slap an 80 per cent tax on Australian barley is a massive blow to South Australia’s 4500 grain farmers, who will now look to boost exports to Vietnam and Thailand.
The Federal Government is vowing to fight the tariff hike but the sector believes it could cost Australian grain growers $500 million this year.
SA growers, who export about 1.5 million tonnes or $300 million of barley each year, are among the hardest hit by Beijing’s decision.
“China was by far our largest customer for malting barley,” Grain Producers SA chief executive Caroline Rhodes said.
“We will now need to concentrate our marketing efforts for malting barley to other countries such as Vietnam and Thailand.” Indonesia, India, Saudi Arabia and Kuwait are also being flagged as markets that could take more barley this year.
Yorke Peninsula farmer Bill Moloney said the tariff hike was a major concern.
He warned that if farmers decided to drop barley from their crop rotation, creating an eventual shortage, Chinese buyers might have to pay more for the product in the long run.
“The erosion of trust in the trading relationship is one of the most damaging parts of this,” he said.
“There’s also others in the agricultural industry, including the wine sector, wondering whether they’re next in line.”
But Ms Rhodes hoped the tariff could be overturned quickly.
“Our growers, particularly those on the Yorke Peninsula and Eyre Peninsula, produce some of the highest-quality barley in the world and for that reason we are keen to see our strong trading relationship with Chinese maltsters and brewers continue,” she said.
Trade Minister Simon Birmingham said some of Beijing’s arguments for the tax were “completely ridiculous”.
It didn’t “stack up” to claim Australian exporters had been dumping barley or were unduly subsidised, he said.
But Senator Birmingham downplayed any link to Australia’s push for a coronavirus inquiry, saying China’s anti-dumping probe had been under way for 18 months.
“In the end, China denies there’s a link,” he said. “The only thing we can do in defence of our farmers is engage … as constructively as we can.”