Australian Barley Exports: New and Old Friends Being Kept Happy!

As reported in recent editions of this newsletter, the removal of the Chinese barley tariff on the 4th August 2023 has seen an incredible and immediate ramp up in exports of Australian barley to China. From a position of zero exports before this date, Australian exporters finished the 22/23 exporting year by delivering 214kmt to China and so far in the 23/24 exporting program have delivered an incredible 2.5mmt in just 3 months.

As news surfaced about this aggressive exporting pace there was a fear amongst the broader industry that sales to Latin America may have to be curtailed. After building these markets in the absence of China there was a strong feeling it would be a shame and indeed short sighted to lose these markets immediately.

Pleasingly, as can be seen in the table below, the largest exports markets of 22/23, including those in Latin America, appear to be well serviced by the Australian industry despite China’s huge barley demand.

On the back of 3 large crops and early notice in May 23 of China reviewing their tariff, the industry has managed ample inventories to service the needs of our old friends in China and new friends in Latin America. Collectively, the Latin American markets of Mexico, Ecuador and Peru have taken 21% of their 22/23 tonnage in the first three months of the 23/24 shipping period, so is well on track. As we move through the exporting year, it will be interesting to see how this trend develops.