Barley bashing proves to be a blessing in disguise
China’s barley tariffs mean some farms now produce a broader range of crops for a broader range of customers.
When China slammed tariffs on Australia’s barley industry, it triggered a panic among barley growers such as fourth-generation farmer Russell Burges. Yet today, Mr Burges believes the episode has left his business in a better position than it was before.
There has been a financial hit from the tariffs, but Mr Burges’s farm near Meckering in Western Australia’s wheatbelt now produces a broader range of crops for a broader range of customers.
“It’s meant we’ve looked into diversifying our markets a lot more, so hopefully in the future we won’t be as reliant on one market,” he said. “Maybe it was the kick in the bum we needed.”
In the years before the China tariffs, Mr Burges had been steadily increasing the amount of barley planted across his farm as he took advantage of strong prices. At one point, about 700ha of his farm’s 2000ha were dedicated to barley.
This year, he has planted only 290ha of barley. Much of the balance has been turned back to wheat, while he has also enjoyed success with a new crop: export-quality hay.
“We had never really done export hay before, but with the soil types and the area where we grew our barley, that was the next best option,” he said. “In dollars and cents per hectare, it worked out really well for us. It was a nice surprise.”
While China has effectively disappeared as a market for Australian barley because of the tariffs, other markets have opened up.
Earlier this month, WA grain handler CBH Group sent its maiden shipment of malt barley from Albany to Mexico.
Feed barley exports to Thailand and Vietnam are also expected to double this year.