Australia could soon be exporting 500,000 tonnes of malt barley to the Indian market. The Australian government is taking action against Beijing at the World Trade Organisation (WTO) over huge five-year tariffs imposed by China on Australia’s barley exports amid diplomatic tensions between the two countries, Trade Minister Simon Birmingham said on Wednesday.. This is despite the imposition of prohibitive tariffs on Australian barley exported to China and the ongoing COVID-19 pandemic. China announced Monday it had slapped punitive tariffs of more than 80 per cent on barley imports from Australia. The Cash quote prices available from the dataset on AgFlow’s database, displayed in Figure 3, showed that there were quotes for Ex Works (EXW) and Free On Board (FOB) Incoterms in 2020. Year over year, exported barley dropped -12.6% from 2018 to 2019. Hence, Australia compensated the Chinese market Barley exports with some of its other leading importers, thus showing great flexibility concerning its Barley exports pipeline. The official Australian commodities bureau raised by 2.0m tonnes to 20.50m tonnes its forecast for the country’s wheat exports in 2020-21, on an October-to-September basis. Australia is a dominant player in world barley export markets, representing 30-40 percent of the world’s malting barley trade and 20 percent of the feed barley trade. Australian barley exports to China fell by 99 per cent in June. “Western Australian barley exports to China were valued at $805 million in 2018-19. Aussie barley exports In May, China imposed tariffs of 80.5% on Australian barley exports, which were made up of a 73.6% anti-dumping duty and a 6.9% countervailing duty. Exports of Barley, Unmilled in Australia increased to 85 AUD Million in November from 42 AUD Million in October of 2020. Barley is considered one of Australia's top three agriculture exports to China but since 2018 has been at the centre of dumping allegations. The ban on Barley exports from Australia is a major event for this market and undoubtedly impacts the economy surrounding the commodity. China has slapped punitive tariffs of more than 80 per cent on Australian barley imports for five years as more than 110 countries backed a push for an international coronavirus inquiry. Of course, that will also depend on Australia’s position at the U.N. Read also: Can Price Variations Predict Trade Flow Volumes? The action by the Federal Government came after China imposed tariffs of 80.5 per cent on Australian barley exports earlier this year. Most importantly, the Australia Feed Barley FOB Australia market is bear from Jan 2020 through May 2020. Australian farmers were already reeling from an 80.5 percent tariff introduced in June on barley exports. Australia normally supplies around 30-40% of the global surplus malting barley trade. 1. On 19 May, Beijing slapped five-year duties on barley imported from Australia, including a 73.6 percent anti-dumping tariff and a 6.9 percent anti-subsidy tariff following months of investigation into whether the country has been dumping barley into the Asian nation. Another point to highlight is shipments for October 2020, which acts as an outlier for the period, but demonstrates the volumes available at the time. The latest trade frictions between the two countries came after an 18-month investigation by China into Australia's barley dumping. Nonetheless, during the September-November period, China started banning Australian Barley exports for several reasons; namely, due to the lack of measures against shipments’ contamination; and also in response to Australia backing the investigation of China as the source of the Covid-19 outbreak at the United Nations. In 2020, China is the largest importing country for Australian Feed Barley and represents a large part of Australian Barley exports. CANBERRA, Australia (AP) — Australia will ask the World Trade Organization to intervene in its dispute with China over barley and expects other nations to become involved in the case, Australian Trade Minister Simon Birmingham said on Wednesday.China effectively ended imports of Australian barley in May by putting tariffs of more than 80% on the crop, accusing Australia of The state of Australian agricultural exports. Figure 4 displays some of the top Australian Barley importers in 2020, with China, Japan, and Thailand shipment volumes per month in metric ton. Goods and services debits (imports) rose $2,774m (10%) to $31,370m. Demand for high quality barley is strong both in Australia and internationally with Australian barley well recognised for its excellent malt and feed qualities. The coming months will provide more data about cash quotes and trade flows for Australian Barley exports. Country Cars; Livestock Connect; ... there is welcome news for the barley industry being able to export to Saudi Arabia through its new import tenders. Dec 16, 2020 | Market Analytics. Australia's trade surplus narrowed in November as China curbs on coal and farm goods took some steam out of exports, while a rebound in the domestic economy sucked in … Well over half its total exports, around 6 million tonnes in a good year, go to China, the world's biggest beer maker. Australia has previously used WTO processes “Whilst Australia respects China’s right, as with any nation, to undertake domestic investigations into anti-dumping matters, we do not agree with China’s decision to impose anti-dumping and countervailing duties on Australian barley,” Birmingham said. Goods and services debits (imports) rose $2,774m (10%) to $31,370m. On December 16 2020 Australia requested consultations with China regarding certain measures imposing anti-dumping duties and countervailing duties on barley imported from Australia. On China’s side, from Figure 2, the overall shipment volumes and origins increased from July 2020 onwards. All in all, Australian Barley exports proved to be robust. Credit: Bloomberg The grain, which is used to make beer and animal feed, was one of the first Australian exports hit … However, it seems that it strongly resisted the Chinese ban policies that loomed since February 2020 and took place starting in September of the same year. This new strategy relies primarily on EXW products, as well as reinforcing other export destinations. Exports of Barley, Unmilled in Australia averaged 76.69 AUD Million from 1988 until 2020, reaching an all time high of 362 AUD Million in December of 2018 and a record low of 5 AUD Million in November of 1991. Total Australian exports of barley are expected to increase by 64% year-on-year, to 7 million tonnes in 2020–21. Therefore, it is not a matter of surprise that huge … AEGIC hosted a virtual event for the Vietnamese brewing and malting industry to provide an update on the 2020 growing season and communicate the benefits of Australian malting barley. As the Barley crop harvest in Australia occurs in May and June, it is customary to see March as the tail end of the shipments and present the lowest total volume. Figure 4: Australian Barley Exports to China, Japan, and Thailand Between Jan 2020 and Dec 2020. According to the International Monetary Fund (IMF), China is by far Australia's top overall export market. The seasonally adjusted balance on goods and services surplus decreased $1,561m to $5,022m in November. It could also be that, with the recent development and approval of several Covid-19 vaccines, the situation between both countries will improve, and China will lift the ban. Australia exports double the amount of feed barley as it does malting barley, and Australia accounts for about 20pc of total feed barley exports. Australia demands sit-down talks with China and lodges a World Trade Organisation dispute over huge barley tariff. The latest trade frictions between the two countries came after an 18-month investigation by China into Australia's barley … China is currently Australia's largest barley export market but have now been struck with an 80 per cent tariff on the produce for up to five years. It is also worth noting that another big ticket item has been added to the list of Australian exports that are now out of favor with Chinese buyers, namely coking coal. It resulted in the loss of a significant partner for Australia in general, and more specifically, for Barley. Between 2015 and 2018, China imported, on average, 4.6 million tonnes or $1.3 billion of Australian barley accounting for more than 70 per cent of Australia’s barley exports. China has imposed temporary anti-dumping tariffs of 107.1% to 212.1% on wine imported from Australia since late last month. Australian Barley exports needed a new strategy to cope with the Chinese market loss and managed to muster this new confidence in the Barley FOB products cash quote. Assuming no additional measures were taken by industry or the Australian government to stimulate demand for Australian barley in alternative markets, the modelling results indicate that in the medium term around 40% of the barley exports originally destined for China would … Over the last 10 years, an average of 55% of Australia’s barley has gone to China. The Australian Barley exports Market is in a key position in Asia due to its advantageous location. The Covid-19 outbreaks and the economic crisis that resulted from it may have had an influence on the bear market situation of the Australia Feed Barley FOB Australia Cash quotes market. Australia exports about 730,000 tonnes of malted barley each year, mainly to countries in Asia for brewing beer. From then on, the apparition of EXW products aligns with a newfound trust in the FOB market. We currently export more agricultural products than we import, with around 65 per cent of Australia's total agricultural production sent overseas. Thus, the prices are steadily increasing, starting in August, even though China’s ban on Australian Barley exports is in place at the time. Chart and table showing historical data - Australia Barley Exports by Year (1000 MT) This data is only a subset of the total number of other importing countries. Australia's barley exports to … China has been the biggest market of Australian Barley since the Dragon overtook Saudi Arabia in terms of Australian Barley consumption. Major shipments from Australia to China are beef, barley, coal, cotton and wine. Usually China is Australia’s largest export destination for barley. China takes about 70% of all Australian barley exports, according to Australian government data. The move came after more than 110 countries, including Australia, backed a … The seasonally adjusted balance on goods and services surplus decreased $1,561m to $5,022m in November. With China's tariff on Australian barley - an anti-dumping and anti-subsidy tariff totalling 80.5% - due to run for five years, the disruption to trade routes could be long-running. "Australian barley should be attractive for export to the big Saudi Arabian market, so pushing out EU and Black Sea exporters," a leading barley trader in Germany told Reuters. Australia exports double the amount of feed barley as it does malting barley, and Australia accounts for about 20pc of total feed barley exports. 30-40% of the total annual barley crop normally makes the specification for malting2 (around 2 to 2.5 million tonnes) 3. Sorry, your blog cannot share posts by email. Australia typically accounts for up to 40% of the world’s malting barley trade, used in beer production, and 20% of feed barley. In 2020, China is the largest importing country for Australian Feed Barley and represents a large part of Australian Barley exports. Moreover, China also showed flexibility with its importing pipeline by reinforcing its pool of Feed Barley origins, with Ukraine and Argentina, for example. Around 88 per cent of Australia’s barley exports to China come from WA. Thus, Australia had to adapt its strategies in order to find solutions that compensated for this loss – and did so with some success. In response to the lost trade in barley to China, there would be an increase in barley exports to other countries. In the latest sign of souring relations between the two countries, China's General Administration of Customs has issued a notice in the past two weeks saying it will apply "enhanced inspection" efforts on shipments of Australian wheat. The Australian Barley exports Market is in a key position in Asia due to its advantageous location. This is a major relief for the Barley producers in Australia and now it is planning to export 5,00,000 tonnes of malt barley to the Indian market. Australian barley exports in 2018–19 were $1.38 billion, down 31% over the year. In May, MOFCOM ruled that Australian barley was being both undervalued and subsidized, which was followed by an 80.5 percent tariff being imposed, consisting of 73.6 percent in anti-dumping duties and 6.9 percent in anti-subsidy duties. 2. Barley production and export markets are more important in Australia than in the other barley-exporting countries, and the importance of exports has increased over the past 20 years, particularly in Western Australia. Figure 2: China Feed Barley Imports by Country Between Jan 2020 and Dec 2020 (sans Australia). China was Australia’s largest market for barley, with an export value of $915.4 million, followed by Japan ($226.7 million) and Thailand ($90 million). In 2016 the value of Australia's agriculture exports was $44.7 billion – approximately 14 per cent of our total goods and services exports. In 2016-17, Australian Barley exports to China went as high as 6 million tonnes. Key Facts. As China showed flexibility with its Barley pipeline, it is necessary to look at other Australian Barley export destinations to understand how Australia dealt with this event. And this observation also applies to other importing origins. With Vietnam’s malting barley imports set to nearly double by 2030, the Australian Export Grains Innovation Centre is working to ensure Australia maintains a significant market share. As well as targeting barley, Beijing has slapped a 212 per cent tariff on Australian wine, banned some wood and beef exports and blocked Aussie seafood and coal. Read also: Do Not Base Your Risk Management On Incomplete Forward Curves, PriceDiscovery TradeFlows RiskMmgt API TrendDiscovery API. It pays A$1.2 billion for 4.2 million tonnes, around 68% of Australia’s barley exports to its top ten markets. China put an 80.5 per cent tariff on Australian barley … Nonetheless, the Chinese market represents large volumes, and rebalancing the export destinations is not enough to dump enough volumes to counterbalance the total volume of Australian Barley exports to China. China has fired its first shot in an increasingly bitter diplomatic row, threatening to slap major tariffs on Australia's barley exports, that could rip hundreds of millions of dollars from the trade. Australia’s dispute with China over anti-dumping and anti-subsidy duties imposed on its barley exports is under way after the World Trade Organization (WTO) confirmed the complaint on Monday.The complaint was officially listed on the WTO website and circulated to all 164 members of the global trade body. But as India removed the restriction in February, Australia gained access to the Indian markets.. However, the degradation of shipments volume from July 2020 onwards is significant compared to the same period in 2019, bearing in mind that Australian Barley crops were exceptional in 2020. Nonetheless, China represented the most important Barley export destination throughout the year and is the largest growing Feed Barley importer in the world.