context: The Australian barley trade is expected to shift back to China after the resolution of the dispute that wiped out nearly US$1 bn a year in exports. This happened at a crucial time when the Black Sea grain deal collapsed and domestic ag production was hit by extreme weather.
On 4 August, MofCOM (Ministry of Commerce) announced that due to a change in industry circumstances, lifting these anti-dumping and anti-subsidy duties would be in the public interest.
The PRC introduced the tariff after accusations of 'grain dumping' amid a diplomatic row in 2020. It instead turned to Ukraine and France for grain. At its peak, the Chinese market imported almost 70 percent of Australia's barley. The amount has plummeted to nearly nothing since the retaliatory tariff was imposed. Australian exporters had to explore businesses in emerging markets like Saudi Arabia, which bought Australian barley at lower prices as an animal feed ingredient, compared to China's purchases for breweries.
The Australian barley market was boosted by the news, with spot prices rising immediately. However, Chinese buyers are not likely to sign the first batch of purchase agreements until November this year, when the harvest season is coming and Australia's export capacity and crop quality are more predictable, reports cngrain.com.