AUSTRALIAN barley exporters are re-entering the Chinese market after China removed the 80.5 per cent duty on the product in early August, benefiting both Australian producers and Chinese consumers.

Since May 2020, China’s duties on Australian barley have effectively blocked exports to that market, worth about $916 million in 2018-19.

These tariffs significantly impacted the barley trade between Australia and China which previously accounted for around 60–70 per cent of barley exports.

In April this year, Australia announced a pathway agreed with China to temporarily suspend the dispute Australia had lodged with the World Trade Organisation (WTO), while China conducted an expedited review of the measures.

The removal of these duties means that Australia will now discontinue legal proceedings at the WTO.

National Farmers Federation chief executive, Tony Mahar, said “scrapping these tariffs is welcome news for some 23,000 Australian grain producers who have been impacted by the tariffs imposed in 2020”.

“The Australian farming sector was always of the view there was no justification for these duties and that it was in both countries’ best interest for all trade impediments to be removed,” he said.

“This announcement is a positive outcome and another step in the right direction to resuming full trade with an important market for Australian agriculture”.

This news comes as ABARES released its winter crop forecast, which showed a mixed bag of expected results.

Following three consecutive record production years, total Australian winter crop production is forecast to fall by 34 per cent to 45.2 million tonnes in 2023–24.

This represents a small upwards revision from the June forecast but remains below the 10-year average to 2022–23 of 46.4 million tonnes.

Australian winter crop yields are also forecast to be below average owing to persistent dry conditions in key northern cropping regions.

The fall in expected yields in northern cropping regions is likely to be partially offset by better yield potential in southern cropping regions.

•        Wheat production is forecast to fall by 36 per cent to 25.4 million tonnes, 4 per cent below the 10-year average. This is a downwards revision from the June forecast.

•        Barley production is forecast to fall by 26 per cent to 10.5 million tonnes, 6 per cent below the 10-year average. This is an upwards revision from the June forecast.

•        Canola production is forecast to fall by 38 per cent to 5.2 million tonnes but remain well above the 10-year average on account of an area planted estimated to be the second highest on record.

This is an upwards revision from the June forecast.

Area planted to winter crops in 2023–24 is forecast to fall year-on-year but remain historically high at 23 million hectares, 4 per cent above the 10-year average to 2022–23.

This fall is mostly driven by a 6 per cent decrease in area planted in New South Wales and Western Australia.