Friday, April 19, 2024

Australia-China barley tariff unlikely to affect NZ

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Australia’s worsening trade war with China, which saw it slapped with an 80% tariff on all its barley exports, is unlikely to have any impact on the New Zealand grain market.
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China imposed the tariff on Australian barley in response to the grain being allegedly dumped on its market.

Federated Farmers arable chair Colin Hurst doubted any of it will be exported to NZ because the bulk of the barley being grown was used in beer production, not feed barley.

In NZ, about one quarter of the barley grown in New Zealand was malting barley with the rest being feed barley.

He says if any Australian barley did come to NZ, it would be the latter.

Hurst understood Australian grain exporters had found other markets to send the product.

He says the exchange rate and how the international market was faring would have more of an effect on NZ grain prices.

Australia had also come off two years of drought, meaning its local supply of feed grain was low and any grain that was available was likely to be sold on the domestic market.

“From what I understand, it’s just about running out of grain,” he said.

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