Positive connections with the important Chinese barley market were re-established and knowledge exchanges facilitated under initiatives swiftly implemented in 2023 as part of a Grains Australia-invested project.
Initiatives and outcomes from the project included in-market delegations and events attended by a broad cross section of Chinese industry representatives, and increased insights into aspects of technical knowledge required by Chinese customers.
Delivered by the Australian Export Grains Innovation Centre (AEGIC), the project was implemented in September 2023 – soon after China removed anti-dumping and countervailing duties on Australian barley in August 2023.
Since May 2020, China’s duties on Australian barley had effectively prevented exports to that market, which had been worth about $916 million in 2018-19.
Grains Australia Chief Executive Officer Richard Simonaitis said the aim of the project was to re-establish Australia’s capacity to support the enhanced use of Australian barley by the Chinese malting, brewing and distilling industries.
“Leveraging a ‘Team Australia’ approach, the Australian barley industry demonstrated to our Chinese customers that we value their business and relationships, and that we are here to provide technical support to enhance the uptake of our products,” Mr Simonaitis said.
“Grains Australia is a willing investor in initiatives that support demand for Australian barley.”
Grains Australia, an initiative of the Grains Research and Development Corporation, is responsible for vital industry services and functions that improve the industry’s competitiveness and profitability.
The project recognised that both countries’ barley industries had evolved since May 2020 when the duties were implemented.
New varieties had been grown in Australia, industries had adapted to the increased use of barley from alternative origins and personnel and industry changes had occurred.
“Reconnecting the industries and rebuilding knowledge and confidence in Australian barley – via project initiatives – helped to overcome these hurdles and assisted in facilitating a rapid return to trade,” Mr Simonaitis said.
“This was evidenced by the strong return of the Chinese market following the lifting of trade barriers.”
With the renewal of trade after August 2023, Australia shipped 2.94 million metric tonnes of barley to China to December 2023.
By the end of June 2024, 5.9mmt of barley was exported to China for the marketing year.
As part of the project, an AEGIC-led Australian barley technical delegation travelled to China in October 2023 and two Australian barley technical symposiums were held in Beijing and Guangzhou, alongside business-to-business meetings with malting, brewing and supply chain operators.
Australian industry organisations represented at the symposium included Australian Grain Technologies, InterGrain, RAGT Australia and Grain Trade Australia, with support provided by the Australian Trade and Investment Commission (Austrade).
Other initiatives delivered during the 12-month project included site visits, an embassy strategic briefing, a technical webinar and a technical presentation at the 2024 Australian Grain Industry Conference (AGIC) Asia.
Mr Simonaitis said the project also highlighted that the Chinese feed grain industry wants greater technical knowledge on the use of Australian barley for the Chinese pig industry.
“While corn remains the main ingredient in Chinese pig feed, the Chinese feed industry is hungry for more technical support from Australia on the use of barley in pig rations, because they understand that it is a valuable inclusion at many different stages of the life stage of the animal,” he said.
ENDS
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Natalie Lee, Grains Australia – media@grainsaustralia.com.au
About Grains Australia
Grains Australia delivers value to the Australian grains industry through the provision of industry services and functions including management of trade and market access, classification, market insights and market education that improves the industry’s competitiveness and profitability.
Grains Australia is an initiative of the Grains Research and Development Corporation (GRDC). GRDC leads investment in grains research, development and extension (RD&E) in Australia to create enduring profitability for grain growers.
A partnership between the Australian Government and grain growers, GRDC’s primary objective is to drive the discovery, development and delivery of world-class innovation to enhance the productivity, profitability and sustainability of Australian grain growers and benefit the industry and the wider community.
Grains Australia and the Australian Export Grains Innovation Centre (AEGIC) are organisations that work together in an integrated way to drive better outcomes for Australian grain growers. AEGIC is a delivery partner for Grains Australia’s market insights and education services.
AEGIC is an initiative of Grains Australia and the Western Australian State Government, through the Department of Primary Industries and Regional Development (DPIRD).