Western Australian barley exported to Mexico for first time
Australian malting barley has been shipped to a new international market for the first time. It comes eight months after China whacked Aussie barley imports with tariffs of 80 per cent.
AUSTRALIAN malting barley has been shipped to Mexico for the first time, potentially opening up a new market for growers.
But it is a “long way” from the volumes previously sent to China before the country whacking Australian barley with tariffs of 80 per cent.
Western Australia grain company CBH recently shipped 35,000 tonnes of malting barley to Mexico, accredited through the International Sustainability and Carbon Certification, from the Albany Grain Terminal.
However, Grain Trade Australia chief executive Pat O’Shannassy said while there were small opportunities for malting barley in South America, it was likely only one or two cargoes would be sent there.
“It is a long way from the volumes that were being shipped to China,” Mr O’Shannassy said. “It is a step in the right direction, but the gap still won’t be filled.
“The reality is that new markets will have limits.”
CBH chief marketing and trading officer Jason Craig said the company’s “strong relationships” allowed for new destinations for malting barley to be found.
“While it is early days, this shipment to Mexico signals a potential new market for malting barley, however this will need to be developed over time,” he said.
Meanwhile, demand for feed barley from Saudi Arabi was set to increase to about two million tonnes this year, according to Mr Craig.
“Saudi is reopening as an export destination for Australian feed barley, which has become very price-competitive compared to barley from alternative origins, such as Russia and the Ukraine that have dominated exports to the country for the past few years,” he said.
And exports to Thailand and Vietnam are expected to double in 2020-21, up from about 700,000 tonnes and 190,000 tonnes respectively, according to CBH.
“Western Australian growers have delivered a remarkable 2020-21 crop, resulting in the production of more than four million tonnes of barley,” Mr Craig said.
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