Australia’s barley sales have rebounded, with 90% of all barley exports going to China after Beijing relaxed import restrictions. 

This good news is happening despite China retaining a high tariff on wine imports,  affecting barley profits. Spent barley contains grain residue, which features in beer and wine making.

The December 2023 sales represent a rapid trade comeback, given China removed barley export restrictions as recently as August 2023. 

The restrictions came up in 2020 when the then administration in Australia indirectly linked China with the outbreak of COVID-19.

High Tariffs and Top Dollar

Since reclaiming its role as one of China’s main barley suppliers, Australia is now awaiting reprieve from wine tariffs.

Negotiations are ongoing to remove  a part of the current  218% duty on Aussie malting barley. Even so, Canberra is still exporting malting grain at this high duty while independent traders from Beijing are seeking more import opportunities.

Tariffs or not, Australia is making profit from its renewed exports. The removal of the main trade blocks other than wine tariffs edged sales by AUD$400,000 ($261,800) for December 2023. 

Australia expects to continue earning in 2024 despite a small barley harvest because the current price more than compensates any supply dip. As a result, the sector may only suffer minor repercussions from the  El Niño drought now affecting prices of local livestock. Cattle, in particular, depend on barley feed.

China is willing to grant top dollar to barley from Australia. In end 2023, the average import price was up to AUD 40 ($26.18) a tonne.

Prices of the wine grain had hit rock bottom in 2020 just after Beijing slapped astronomical duty on barley imports.

Successful tariff review would draw in more businessmen from China and boost earnings for Australia’s exporters at the current profitable price.

Aussie Malting Barley Volumes

The shipment size for December 2023 illustrates the rapid growth of exports in the short period since the lifting of export restrictions. 

Australia shipped over 1.298 million metric tonnes of grain barley during the month. Feed barley notched 60% from November’s sales, to register 843,260 tonnes, while malting barley reached 455,399 tonnes.

The barley season, however, ends early in Western and Southern Australia, leaving Victoria to bridge export demand.

Barley is a distinguished grain for making wine as it brews a complex ale that competes well with other old wines. Its brewing process is generally time-intensive, requiring ingredients like hops, but it eventually pays off with a complex blend.