Barley farmers celebrate as Beijing finally lifts tariffs

Barley growers – particularly those in Western Australia – are relieved about restrictions on the $1.2bn trade with Beijing being lifted.

Barley growers – particularly those in Western Australia, who supplied the largest amount to China before the tariffs hit – are relieved about restrictions on the $1.2bn trade with Beijing being lifted.

Stefan Meyer, a broker with financial services company StoneX, said the announcement was “huge news for the grains markets and presents a new landscape for barley pricing”.

The announcement saw the price of barley in the WA cash market surge by $20 per tonne.

He said WA barley was so cheap it was being imported to Queensland for cattle feed.

The end of tariffs would “put an end to this domestic trade, and WA barley previously destined for Queensland will now likely find a home in China”.

The announcement amounted to a “compelling advantage for Australia” and came at a time when Russia has been unable to meet China’s barley demand due to trade sanctions in the wake of its invasion of Ukraine.

GrainGrowers chair Rhys Turton said China was a valued market for Australian grain and had once accounted for 60 to 70 per cent of barley exports – a trade worth $1.2bn a year at its peak.

He said barley growers were “relieved” the problems had been resolved as the Chinese tariffs were estimated to have cost the industry about $2.5bn over the past few years.

The reopening of the Chinese market is important as it increases the demand for the higher-end malt barley which was a favourite of Chinese beer makers before the imposition of the tariffs.

WA grain grower Tracy Lefroy said farmers were “reviewing plans to include larger malt barley plantings by reducing other cereal crop areas”.

“Malt barley is one of our most profitable crops on a per-hectare basis, and with the reopening of the China market, we are keen to capitalise on this opportunity, ” she said.