VFF: Be barley aware

The leader of Victoria’s peak farming body has appealed to growers across the region to stay informed about developments surrounding severe Chinese tariffs on Australian barley.

Victorian Farmers Federation president and Wimmera farmer David Jochinke said barley growers would be in the firing line and it was important they understood what was happening.

“Our message is that everyone needs to keep their eyes wide open,” he said.

“China has been our largest trading partner in barley in recent history and this restriction in trade has been coming at us for the past 18 months.

“It will have an effect on farmers’ bottom line and farmers need to be acutely aware of that.”

Mr Jochinke said Australia had many trading partners where it could redirect its barley harvest, but the China market had been a large and profitable avenue for the product.

He said the VFF, through many discussions and meetings with trade and industry leaders, was strongly advocating state and federal governments use any political capital they had to navigate out of the situation.

“We’re asking them to calmly negotiate a way forward from this position with China, but also double efforts with other trading groups to extract as much potential out of these agreements as possible,” he said.

“I’m telling farmers that they are allowed to get angry about what has happened.

“But everyone also has to remember that any customer has the ability to choose how they trade with us.

“The way we act now has ramifications, not only for the future, but also other products going to China.

“One positive aspect is that barley has a relatively high shelf-life and is not as perishable as other goods, unlike for example, seafood, which is extremely exposed.”

Import tax

Last week China imposed an 80 percent tax on all barley imported from Australia, claiming it was based on a 2018 probe into whether Australia was unfairly subsidising barley producers or ‘dumping’ barley exports to gain an unfair advantage against domestic producers.

Australia shipped more than 2.5-million tonnes of barley, both for beer production and animal feed, to China in 2018-19.

It also exported the product to Japan, 700,000 tonnes; Thailand, 370,000; Vietnam, 350,000; and South Korea, 100,000. Other lesser but important markets included the Philippines, Qatar, Saudi Arabi, United Arab Emirates and Kuwait.

Mr Jochinke said the issue dramatically highlighted problems associated with over-reliance on sole markets.

“This clearly shows a need for diversity in marketplaces as well as farming produce. And we have to take action to protect our farming businesses,” he said.

Despite anxiety surrounding China’s response to Australian barley exports, Mr Jochinke said he remained confident Victoria’s broadacre agricultural industry would be paramount in helping the state and region recover from the economic impact of COVID-19.

“We’re seeing agriculture ride out COVID-19 and we will also ride out this barley wave of uncertainly,” he said.

“The thing that makes agriculture resilient is our equity and stability and the growing diversity we have within our farming enterprises.

“The most robust of farm businesses have built diversity into their operations.”

Mr Jochinke added consistent autumn rain, in providing an outstanding start to sowing and growing seasons across the region, was helping offset many other issues.

“The rain has been absolutely fantastic,” he said.

“To be able to get the regular showers we have has given everyone extreme confidence looking forward to the year ahead.”