Two prominent Australian grains business will have to wait to access the China barley market in spite of the recent dropping of heavy tariffs against Australian exports.
The Australian barley sector rejoiced last week with the news that China was removing its 80.5 per cent tariffs on Australian barley, however two businesses, CBH and Emerald Grain, now trading as Louis Dreyfus Company Grain Australia, remain on the Chinese government list of banned exporters.
The companies were banned in late 2020 and were not among a revised list of approved Australian exporters earlier in the year.
Louis Dreyfus Grains Australia chief executive David Johnson said the Chinese move to end the tariffs was a positive one for the industry overall and said his company was now working in with the Australian government to have its ban overturned.
"The Department of Foreign Affairs and Trade has been fantastic and we'll continue to work with them to hopefully regain access to the Chinese market at some stage."
A CBH spokesperson also welcomed the news of China repealing the tariffs, even though their business is not yet able to participate in the market.
"CBH welcomes this positive development for the Australian barley industry," the spokesperson said.
"We continue to work with the Australian government to have the suspension on barley exports from CBH Grain to China lifted and the government continues to make representations on our behalf on this case," they said.
For its part, the government said it was continuing to work on the matter.
"I'm aware a small number of key grains exporters are still suspended from accessing the Chinese market, and we're working with industry and the Chinese customs agency to ensure all producers are promptly allowed access to the market," said agriculture minister Murray Watt.
"Just yesterday, trade minister Don Farrell wrote to his counterpart Minister Wang Wentao to seek his assistance to promptly conclude the relisting of these exporters," he said.
With the premiums on barley being sold to China likely to be around $30 a tonne according to industry estimates not having access to the market will put both businesses behind the eight-ball in terms of accumulating barley if the ban is not lifted in coming months.
However, there will be some lag in terms of reopening the market, due to the majority of old crop and shipping slots already being committed to existing sales, so if the two companies can win their export approval back relatively quickly they would not be significantly disadvantaged.
The focus for Chinese market in the short-term is expected to be for malt barley, which was traditionally Australia's major barley export to China before feed demand started growing in the years immediately preceding the 2020 tariffs.
With ample feed grain supplies expected in competing nations such as the US it is expected the Chinese will be keener on malt barley, where they have historically preferred Australian product.
Emerald Grain was purchased by grains giant Louis Dreyfus and changed its name as of June 1.
The two companies were officially banned by the Chinese customs department in late 2020 for what were alleged breaches of quarantine requirements.
