Barley growers await outcome of China’s dumping claims

The federal government hopes China will not act against barley producers as it works through its anti-dumping investigation.

A barley crop being harvested at Rupanyup, 290km northwest of Melbourne. Picture: Dannika Bonser

The federal government hopes China will not take action against Australian barley producers as it works through its anti-dumping investigation, Trade Minister Simon Birmingham says.

“We are continuing to work closely with the Australian barley industry in response to these investigations, which included hosting a roundtable with industry representatives last week,” Senator Birmingham told The Australian yesterday.

“Australia respects China’s domestic processes and is using them to mount the strongest possible case to uphold the integrity and market access of our world-leading agricultural producers. It’s not uncommon for countries to investigate dumping allegations made by local businesses or industry groups.

“However, I’m hopeful China will recognise that Australia sells barley at competitive global prices and that these allegations are unsubstantiated.”

His comments came as Australian barley producers wait for the outcome of an anti-dumping investigation launched last December by China’s Ministry of Commerce following a request by the Chinese Chamber of Commerce and Industry.

Australia is China’s major supplier of barley, used for both brewing and livestock feed in China.

In 2017, Australia sold 6.5 million tonnes of barley or two-thirds of its crop to China, an export trade worth about $US1.5 billion ($2.1bn). But exports fell last year as a result of the drought.

While the Chinese investigation can theoretically take a year and even longer, there are reports some announcement on the case could be made soon.

“The Australian government and exporters have been expecting a decision (from China) for the past two weeks,” the Grain Brokers Australia weekly market report said.

The investigation covers the period from January 1, 2014, to September 30 last year, when there were steep increases in Australian barley sales to China.

The Chinese Chamber of Commerce and Industry said barley from Australia was being subsidised by the federal government, allowing it to come into China in large volumes at low prices, hurting local suppliers.

The announcement of the investigation in December has led to speculation it could have a political element with China unhappy at Australia’s decision to ban the use of equipment from Chinese telco giant Huawei for the next generation 5G network.

Other sources say it also follows a number of anti-dumping actions taken in Australia against Chinese imports.

The Grain Brokers’ report said there were “market rumours” the Chinese government would delay any imposition of ­import restrictions on Australian barley as China needed the grain over the next few months.

It said recent increases in the price of barley being paid to Australian producers indicated there was increased interest from the export sector.

“China has reportedly realised they will need more Australian barley, particularly malting barley, before a new crop of Black Sea stocks become available in July,” it said. “Sources suggest Beijing may have deferred a decision until May.”

The Australian industry and the federal government lodged submissions at the end of January to argue their case with the Ministry of Commerce in China.

The case is being closely watched for its impact on Australia-China relations at a time when shipments of Australian coal are also taking longer than normal to be processed by Chinese customs.

China has insisted the coal processing delays are not aimed at any country but are part of a move for closer inspections of imported coal for environmental purposes.