Australian farmers would be forced to sell their barley supplies to the domestic livestock industry or cheaper international markets after China effectively banned imports from the nation, Australian farmers said yesterday.
China late on Tuesday said that it would ban barley imports from Australia’s largest grain exporter, just weeks after it slapped a more than 80 percent tariff on shipments from the nation.
Barley shipments from CBH Grain Pty Ltd would be halted after pests were found on multiple occasions, the Chinese General Administration of Customs said on its official WeChat account.
CBH, a cooperative of farmers, denied the charge as it said it would work with the government in Canberra to overturn the ruling.
The ruling has seen Chinese processors shun other Australian sellers amid fears that Beijing could ban other grain handlers.
As a result, Australian farmers would now target the domestic market, where demand is unusually high after a three-year drought wilted large areas of pasture.
“The financial hit will be enormous, but we can look at domestic livestock market, which doesn’t have much feed at hand after the drought,” said Andrew Weidemann, a grain grower in Victoria state.
“The big issue is next year. If the season continues, there will be pasture, and so farmers like myself will have to switch to other crops” he added.
China had until earlier this year bought as much as 70 percent of Australia’s barley exports.
However, with that market closed, Australian farmers are likely to receive about A$50 (US$37) per tonne less than what China would typically pay.
The disruption of Australia’s barley market comes amid souring bilateral relations with Beijing.
Already inflamed by Canberra’s allegations that China was meddling in its domestic affairs, relations worsened when Australian Prime Minister Scott Morrison called for an independent inquiry into the origins of COVID-19, which was first detected in the Chinese city of Wuhan late last year.
China just weeks later slapped on the tariff.
Last month, it said it would also investigate whether Australian wine was being dumped into its largest buyer, a review that has since been expanded to include possible subsidies.
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