Barley tariffs go against the grain
FARMERS TO TAKE BIG HIT
CHINESE tariffs on Australian barley come amid predictions of a bumper 2020-21 crop, one of the country’s largest grain exporters says.
A spokeswoman for barley buyer and exporter Grain Corp said early indications for the 2020-21 barley crop indicated it would be “much better” than previous years.
“In terms of the upcoming crop, early indications are positive; we’ve seen significant rainfall across the east coast of
Australia, which has allowed widespread planting,” the spokeswoman said.
“We’ll continue to work with our grower customers to connect their grain with a globally diverse customer base as we have always done, particularly with what will hopefully be a much better winter crop in 2020-2021. We are very disappointed with the outcome, the impact of which will likely fall on Australian growers and our Chinese customers, both of who are an important part of our network.”
Eric Sharkey, who farms barley among other crops across 1000ha at Balliang East, said he would scale back barley production this season in light of the tariffs.
“We might drop off a paddock or so, our paddocks are about 20 to 150ha. But we produce about two to six tonnes per hectare per year,” Mr Sharkey said.
He predicted due to the 80 per cent tariffs that are due to last for five years many barley growers would scale back production next season.
“Many astute farmers who are growing grain will be looking six to 12 months ahead to predict the market,” he said.
Mr Sharkey said while Australian consumers preferred high-quality barley malt, feed grain was preferred in the Chinese market that was subsequently malted.
Mr Sharkey said during an average season about twothirds of his barley production was malt.
He said it was likely barley farmers across the eastern seaboard would already be locked into production levels for this season as sowing had already begun. Some Victorian growers have estimated the tariffs would cut their revenue by about $100,000 this season.
In excess of 12 million tonnes of barley is expected to be produced this year after significant rainfall in cropping areas have created favourable growing conditions.
The trade is worth about $600 million a year with the majority of barley exported from Australia produced in Western Australia.