WA’s biggest grain marketer CBH Group ‘excluded’ from China barley tariff lift

Western Australia’s biggest grain exporter CBH Group remains barred from sending barley into the Chinese market after the Asian superpower lifted trade-ending tariffs against the majority of Australian barley producers. CBH and Emerald Grain — which predominantly trades in the eastern states — have not been added to Chinese customs lists updated on Saturday, August 5, meaning that despite the tariffs being dropped, the two companies cannot export barley to China. Barley prices from CBH’s Albany, Esperance, Geraldton and Kwinana Ports jumped $15 per tonne when news of the tariffs being lifted broke — with industry believing CBH was included in the trade ban lift. A CBH Group spokesman confirmed the company was still unable to access the Chinese barley market but said the Federal Government was going in to bat for the company in a bid to have the tariffs lifted. “The Australian Government has been advised by the Chinese Ministry of Commerce that it will remove the anti-dumping and countervailing duties on Australian barley exports,” he said. “CBH welcomes this positive development for the Australian barley industry. “CBH continues to work with the Australian Government to have the suspension on barley exports from CBH Grain to China lifted. “The Australian Government continues to make representations on our behalf on this case.” On Friday, August 4, the Chinese Government confirmed that it was no longer necessary to continue with the crippling taxes on Australian imports — which cost industry $1 billion per year — due to “changes in the market situation of barely in China.” In return, the Australia will discontinue its World Trade Organisation dispute against China over the tariffs, a case it had suspended in exchange for Beijing agreeing to a review. CBH buys the bulk of WA’s grain harvest each year, but the Chinese Ministry imposed a trade-ending, 80 per cent tariff across the entire Australian barley industry in May 2020, amid claims Australian grain marketers had “dumped” barley on the Chinese market. Four months later, the Chinese Government issued a damning statement saying it had suspended barley imports from CBH Group specifically over claims of excessive weed seeds in its the products — a claim CBH has vehemently denied. Federal Trade Minister Don Farrell said the Federal Government was working to reinstate market access for all Australian companies, including CBH and Emerald Grain. “We are working with industry and the Chinese system to ensure all producers are promptly registered and allowed access into the market,” Mr Farrell said. “We intend to use this process as a template for resolving the issue in respect of wine which is still ongoing.” Federal leaders and industry hope China’s barley tariff removal will pave the way for other products still facing crippling tariffs, with hopes wine and then beef will be next in line. The majority of Australian wine exported to China still faces duties of more than 200 per cent, with the industry losing $1.5 billion in value overnight when the tariffs were introduced in March 2021. WA Liberals agriculture spokesman Steve Martin urged the Federal Government to ensure CBH Group gained access to the Chinese barley market. “It is unclear why CBH remains locked out of the Chinese barley market but this is a significant set back for WA growers,” he said. “The Federal Minister needs to do everything possible to assist WA marketers and growers to regain access to this important market.” Nationals leader and opposition agriculture spokesman David Littleproud said the government needed to work with the Chinese to ensure export processes were streamlined. “That’s a commercial decision that exporters have to make and they have to make those decisions predicated on the risk they’re prepared to take,” he said. “It’s important they calmly work through where they’re going to send their product and export their product to in the future, learning the lessons of the past.” The backdown on tariffs was widely welcomed by Australian industry but it could take weeks for the changes to flow through. Wagga Wagga-based exporter Murrumbidgee Grains, which handles and packs grains on behalf of about half a dozen producers, said 50,000 tonnes could soon start flowing to China. But director Peter Hassall said it could take a few weeks for the ships to start given the weather and the availability of port slots. He said it depended on what stock remained in NSW and it could take a few weeks to prepare. “Guys just won’t have shipping slots lined up and ready to go,” he said. “I haven’t heard anything at this stage but certainly blokes are discussing doing a bit.” WA Agriculture Minister Jackie Jarvis said the State Government was aware CBH had been been excluded and was highlighting the importance of the issue to her Federal Government counterparts. “The State Government is hopeful the Chinese Government’s decision last week to remove the 80.5 per cent anti-dumping and countervailing duties imposed on Australian barley in 2020 will pave the way for an across-the-board resumption of trade in barley between Australia and China,” she said. Federal Agriculture Minister Murray Watt have been contacted for comment.