The grains industry, including both producers and exporters, are cautiously optimistic about the opportunities presented by the reopening of the Chinese barley trade.
China last week announced it would remove onerous tariffs of 80.5pc on Australian barley, paving the way for the resumption of trade.
Farmer representative body GrainGrowers said the news of the resumption of an industry it claimed was worth $1.2 billion annually, was a shot in the arm for growers.
GrainGrowers chair Rhys Turton said China was a long-standing and valued market for Australian grain that had accounted for 60-70 per cent of Australian barley exports prior to the tariffs being imposed in May 2020.
He said Australian barley growers were relieved the situation is resolved.
"Thankfully, we now have a trading environment that allows us to get on with the business of producing high-quality products that meet the needs of our Chinese trading partners."
He did not believe it would take long for barley to start flowing into Chinese ports.
"The Australian grain industry has historically had longstanding customer relationships with Chinese domestic maltsters and brewers, with premium prices paid for specific value-driven products."
"The decision to remove the duties has opened the door to resume these strong trade links."
However, Mr Turton said the lock-out had shown the industry the value of diversification.
"With around 70 per cent of Australian barley production headed overseas, any concentration of exports makes us vulnerable to external market forces."
"Market diversification to mitigate those risks is a key priority over the long term for the Australian industry."
WA grower Tracy Lefroy was also cautiously optimistic about the news.
"News of the re-opening of the China market to Australian barley is met with a mix of relief and cautious optimism," she said.
"The re-opening of the market offers the potential to increase sales volume of premium Australian malt barley, but there is caution there also due to the recent volatility of the China-Australia trade relationship which led to the market closing in 2020."
"I think most farmers have a realistic understanding that future disruptions in trade to China are possible."
She also supported a push to retain the markets developed since the tariffs were imposed.
"I would like to think there will be ongoing efforts to diversify export destinations and thereby reduce our dependency on any single market."
Grain Trade Australia chief executive Pat O'Shannassy said the news was an important step forward.
"This will help us to resume the strong and mutually beneficial relationship between China's and Australia's barley industries," he said.
"Our view has always been that resolving the barley dispute is in the beneficial interests of both China and Australia, and respective industries."
He said China had accounted for the majority of Australian barley exports in the years prior to the tariffs, peaking at a whopping 6.3 million tonnes for the 2016-17 marketing year.
Grain Producers Australia chair Barry Large said the news was a big win for Chinese consumers and Australian exporters.
"We thank and acknowledge the work of both governments in contributing to this positive outcome through an expedited process to reach a resolution which has been significantly shorter than if the WTO process continued," he said.
"This resolution will allow Australian producers to re-commence selling and exporting our high-quality barley to China again.
"Barley is an important rotation crop for Australian growers and having another strong market and commercial option to sell our barley into will further support our sustainability and production programs.