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XLD Comment on Australia-China Barley News

Earlier this week the Federal Government held a press conference indicating that it had resolved the dispute with China regarding Australian barley imports. While the headline is very positive, we should be cautious.

A detailed reading of the statement shows that the Australian Government has withdrawn its WTO appeal against China, while the Chinese Government have three months to review their position on the punitive import tariffs placed on Australian barley.

XLD believes the Chinese have changed their attitude because Australia now has the cheapest and best quality barley in the world, and Chinese maltsters are looking to buy a lot of it (keep in mind the tariff was introduced when Australian barley was the most expensive in the world).

Longer term this is very positive for Tasmania barley prices- especially malt.


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