Chinese Malthouses Still Want Australias High-Quality Barley Despite Tariffs

Despite the 80 percent tariff imposed by the Chinese regime, companies in the communist nation continue to buy Australias high-quality barley for beer production.

Earlier this week Australian cargo ships were rerouted to other countries as Chinas tariff came into effect, however, a select few are finding their way into the Chinese market because of demand.

The 200-meter long cargo ship Federal Innoko delivered barley to beer hotspot Dalian, north-east China this week.

Another shipment of Australias barely is being carried by the Panama-flagged ship African Arrow and is expected to reach Dongjiakou in Chinas northeast within the next week.

Chinas decision would not only hurt Australian farmers but Chinese malthouses using Australian barley, says Mark Modra, a South Australian (SA) farmer at Greenpatch on the Lower Eyre Peninsula and head of the SA Barley Advisory Committee.

“Its difficult for them to change varieties or to a different barley overnight and weve worked closely with them to develop a malting industry using our varieties,” Modra said.

Australian barley growers and Chinese malthouses have had a relationship since the 1990s. For many years Australia has had the advantage over competitors in France, Canada, and the United States by being closer and offering better value for money.

The Australian government and barley farmers have rejected the findings of Chinas investigation that led to the tariffs being imposed.

Chinese Customers Prefer Premium Beer

The regimes tariffs on Australian barley has not scared off Chinese buyers who want high-quality barley for the production of premium beer.

While demand for beer at restaurants in China has dropped amid the CCP virus pandemic, Nikkei Asian Review has reported that “the popularity of premium beer has led to higher unit prices, with beer sales up about 37 percent to roughly $93 billion.”

Australian barley is considered one of the best in the world for brewing beer because its low-moisture and cleanliness make it a difficult product to replace.

“Despite the high tariffs, some Chinese buyers have to take these shipments as beer makers prefer Australian barley, which is high quality and gives good taste,” said Ma Wenfeng an analyst at Beijing Orient Agri-business Consultant Co Ltd.

“These high-end brands can simply pass the cost to downstream consumers.”

China is the worlds top producer and consumer of beer, according to the U.S.-based Beverage Trade Network. However, China does not fully rely on producing its own barley for malting. In fact, barley production in China is typically used for animal feed has been in decline for 14 years.

On March 24 Nikkei Asian Review reported that China Resources, the makers of Snow beer, will endRead More – Source