Barley growers call for $20 million fund to recover from China tariff hit

GrainGrowers says a dedicated fund should be set up to help barley growers find new markets, in the wake of China’s decision to put 80 per cent tariffs on Aussie barley imports.

CROPS: Robert Ruwoldt cropping at KewellPictured: Generic barley crop. PICTURE: ZOE PHILLIPS

A $20 MILLION “recovery” fund should be set up for Australia’s barley industry to find new markets, the peak grains lobby says.

GrainGrowers wants the Federal Government to set up the dedicated fund following China’s decision to impose anti-dumping tariffs of 80 per cent on Australian barley imports – effectively knocking growers out of their biggest market.

Industry estimates growers stand to lose about $2.5 billion over the next five years due to China’s actions.

The group made the call in a pre-Budget submission to the Federal Government.

Australia had long been the largest supplier of barley to China, exporting almost 6.5 million tonnes in 2017-18, worth about $1 billion.

GrainGrowers chief executive David McKeon said the Government need to take further action to improve global market access for industry.

“There is a huge crop in the ground with a bumper harvest expected, farmers are lifting (Australia’s) economic recovery post-COVID,” Mr McKeon said. 

“So the Government needs to step up to the plate and help us.” 

Mr McKeon said Indonesia was a key growth market, with the recent signing of the Australia-Indonesia free trade agreement, while Japan and the Philippines also provided opportunity.

GrainGrowers is also calling on the Government to fund a targeted infrastructure program to remove bottlenecks along grain freight routes.

“Grain supply chain costs are significant, making up roughly 30 per cent of the value of Australian export grains at port,” the submission read.

“Freight savings represent dollars directly back into the pocket of growers and reduce costs for consumers.”

The Federal Government will hand down the Budget on October 6.